Suppose you purchase a house for an amount equal to $$896,411$ and you agreed to

make a down payment of $25\%$ of the purchase price. The balance is amortized over $20$ years. The

house mortgage agreement is subject to $5\mathrm{.}832\%$ compounded semi$-$annually for the first four years

and requires equal monthly payments.

$->$ What is the size of the equal monthly payments for the first four years?

$->$ Determine the mortgage balance at the end of the four$-$year term. Perform this calculation

using Excel, without an amortization schedule.

After four years, the house mortgage is refinanced at a reduced nominal interest rate of $4\mathrm{.}671\%$

compounded semi$-$annually and the house mortgage is amortized over the remainder of the term.

$->$ What is the size of the new mortgage payments for the remainder of the term?

$->$ Determine the size of the last payment. Perform this calculation in Excel, without an

amortization schedule.

Prepare one complete amortization schedule showing the mortgage amortized over the full $20-$year

period $($reflecting the change in payment size$).$ Cell reference values appropriately. ROUND all

monetary values to the nearest cent. Express only the totals as currency.

Highlight the calculated payment for the first four years and the first payment on the amortization

schedule using one colour.

Highlight the new payment and the first new payment on the amortization schedule with a second

colour.

Perform checks of your calculated values compared to the amortization schedule values.

$->$ Highlight the calculated principal balance of the loan after four years and the balance shown

in the amortization schedule using a third colour.

$->$ Highlight the calculated final loan payment and the amortization schedule final payment using

a fourth colour.

Use the amortization schedule value directly to answer this question:

$->$ What would be the total cost of financing your house mortgage assuming that the rate did

change after four years, as detailed above?

$->$ Highlight the statement and the amortization schedule value using a fifth colour.