w payments needed starting in the 19th month if the loan is our payments inclusive, vepalu a 12 = 12% by the end of the original 3 years Answers 4. Mrs. Metcalf purchased property several years ago (but she cannot remember exactly when). She has a statement in her possession from the mortgage company which shows that the outstanding loan amount on January 1, 2014, is $28 416 60 and that the current interest rate is 11% compounded semi- annually. It further shows that monthly payments are $442.65 Assuming continuation of the interest rate until maturity and that monthly payments are due on the 1st of every month a. What is the final maturity date of the mortgage? b. What will be the amount of the final payment? c. Show the amortization schedule entries for January 1 and February 1, 2014 d. Calculate the new monthly payment required (effective after December 31, 2013) if the interest rate is changed to 8% compounded semi-annually and the other terms of the mortgage remain the same e Calculate the new monthly payment if Mrs Metcalf decides that she would like to have the mortgage completely repaid by December 31, 2023 (.e. last payment at December 1 2023). Assume the 11% compounded semi-annually interest rate, and that new payments will start on February 1, 2014 w payments needed starting in the 19th month if the loan is our payments inclusive, vepalu a 12 = 12% by the end of the original 3 years Answers 4. Mrs. Metcalf purchased property several years ago (but she cannot remember exactly when). She has a statement in her possession from the mortgage company which shows that the outstanding loan amount on January 1, 2014, is $28 416 60 and that the current interest rate is 11% compounded semi- annually. It further shows that monthly payments are $442.65 Assuming continuation of the interest rate until maturity and that monthly payments are due on the 1st of every month a. What is the final maturity date of the mortgage? b. What will be the amount of the final payment? c. Show the amortization schedule entries for January 1 and February 1, 2014 d. Calculate the new monthly payment required (effective after December 31, 2013) if the interest rate is changed to 8% compounded semi-annually and the other terms of the mortgage remain the same e Calculate the new monthly payment if Mrs Metcalf decides that she would like to have the mortgage completely repaid by December 31, 2023 (.e. last payment at December 1 2023). Assume the 11% compounded semi-annually interest rate, and that new payments will start on February 1, 2014