Suppose that 6 months from now, the COVID crisis has caused real estate prices to fall 20% and you are confident that they will bounce back. You have decided to buy a condo on Four Winds Drive, a short walk from the new subway stop at Keele and Finch. You plan to live there with a friend while you finish off your BBA and then commute to downtown where you expect to work after graduation. The condo will cost $400,000 and your parents have provided you the down payment money of $100,000. And the bank is quoting 2.50% quoted rate based on a 25-year amortization, which will be compounded semi-annually in accordance with Canadian law.

Required:

1. What would be the amount of monthly payments on the mortgage? (6 marks)
2. What would be the principal outstanding after five (5) years? (5 marks)

Answer both parts of the question in the text box below. Round your final answer to 2 decimal points