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:

Calculate how much will be the mortgage monthly payment and make a payment schedule for the first 12 months.

The following information is required:

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.

The payment schedule must contain the following 5 columns:

a) Payment dates starting from November 2019

b) Monthly payment amount

c) Out of this fixed monthly payment, how much is paying for interest

d) Out of this fixed monthly payment, how much is for paying down the principal

e) Principal balance at the end of each month after making the payment

For the payment schedule, also calculate the following for the first 12 months:

1) How much total mortgage payment had been paid?

2) How much total interest had been paid?

3) How much total principal had been paid?