To answer the questions below:

• Include a statement at the end of each section. Describe the meaning of the numbers found.

• For instruction on how to submit the assignment review page 7 of the course outline.

1. [Class 9 - 21 Points] Julie has returned from her overseas posting and taken a total of $30,000 in savings and used it for a down payment on a house. The house costs $285,000, so the remaining $255,000 will be financed through a mortgage (loan) with her bank. She will be making bi-weekly payments over 25 years at 3.25% to pay off the mortgage.

1. [3 Points] Calculate Julies bi-weekly mortgage payment.

2. [3 Points] Of her 1st payment to the bank, how much will go to pay interest on the mortgage and

   how much will go towards paying down the loan?

3. [3 Points] What will be the total interest paid over the 25 years?

4. [3 Points] The mortgage will come up for renewal in 5 years. How much will she owe at that time?

5. [3 Points] Over the 1st 5 years, how much interest has she paid and how much has she paid on the mortgage?

6. [3 Points] Julie would like to pay off the mortgage in less than 25 years and has determined that she can afford to pay $700 bi-weekly (this should be larger than the amount you found in part a above). How long will it take Julie to pay off the mortgage. Find your answer algebraically, not simply with Goal Seek.

7. [3 Points] Construct an Excel spreadsheet and amortization table for the above question. Your spreadsheet should be laid out similar to the example in the screenshot below.