Suppose you purchase a home for $900,000 and you provide a 10% down payment. Assuming the quote rate is 6% with semi-annual compounding and that you would like to make weekly payments over a 30-year amortization period, determine the following:

Question 13

What would be the Total Interest paid after 5-years?

$228,034.40

$231,587.60

$253,408.03

$257,319.55

Question 12

What would be the Principal Balance remaining after 4-years?

$727,677.30

$746,143.69

$753,050.93

$765,825.57

Question 11

What would need to be the weekly payment to repay the mortgage within the 30-year amortization period?

$596.84

$1,109.76

$1,193.68

$4,818.07

Question 10

What is the Effective Periodic Rate (EPR)?

0.112118%

0.113752%

0.227505%

0.493862%

Question 9:

What is the Effective Annual Rate (EAR)?

3.0000%

3.0450%

6.0000%

6.0900%