You are planning to buy a house in Brampton that has a price of $$1,200,000.$ One of the local financial

institutions has offered you a mortgage at a quoted rate of $5\mathrm{.}4\%$ per year. Interest will be compounded

semi$-$annually. The bank has indicated that they will require $$120,000$ down payment. The bank is

prepared to lend you the remainder of the purchase price of the house. The amortization period will

be $30$ years and the term of the mortgage will be $4$ years. You are going to make weekly payments on

your mortgage. The payments will be made at the end of each week. You have heard from your friend

who has just completed AFF$210,$ that by making additional payments on your mortgage during the

over the life of the mortgage you can reduce the amount of interest that you will pay over the life of

the mortgage. Your friend has shown you a sample amortization schedule template $($below$).$

Sample Mortgage Schedule

a$)$ Answer the following questions:

i$.$ What is the amount of your weekly payment?

ii$.$ How much will you pay in total on your mortgage over the life of your mortgage?

iii. What is the total interest that will be paid over the life of your mortgage?

iv$.$ What is the total you will pay during the term of the mortgage?

v$.$ What is the balance owing on the mortgage at the end of the term?

vi$.$ How much principal will you have paid off during the initial term of your mortgage?

vii. How much interest will you have paid off during the initial term of your mortgage?

b$)$ Prepare a mortgage amortization schedule to illustrate how the mortgage will be repaid over the

next $30$ years and calculate the following:

i$.$ Use the amortization table to determine the first payment where the interest portion of the

payment is less than $30\%$ of the total payment. Identify the payment number where this

occurs.

c$)$ You have decided to increase your weekly payments by $$100$ for the life of the mortgage $($until

the mortgage is paid off$).$

i$.$ How long does it take to pay off your mortgage?

ii$.$ How much interest do you save by making the extra payment of $$100$ every week?