To take advantage of the current low interest rate, you bought a condo unit in Toronto downtown.

The unit costs $600,000.You paid 20% down payment and borrowed the remaining balance from the bank.

The 5-year mortgage rate is 3.35%, amortized over 25 years. The mortgage payment is monthly.

Requirement:

1. Calculate what is the effective interest rate while the APR is 3.35%

2. Calculate what is the actual monthly interest rate the bank will use to calculate your monthly payment

3. Calculate the monthly payment amount

4. Make a payment schedule for the first 12 months.