Question
You want to buy a property in city of Vancouver and the purchase price is $440,000. You will be making a down payment of 20%
You want to buy a property in city of Vancouver and the purchase price is $440,000. You will be making a down payment of 20% of the purchase price, and you will be taking a mortgage for the rest of the amount.
For the mortgage, your bank quoted you an interest rate, APR semi-annual compounding with 25 year amortization. And you have converted the rate to APR monthly compounding of 1.8% APR monthly compounding.
What would be the monthly mortgage payment for the above purchase?
What would be the mortgage balance you owe your bank after 5 years of mortgage payment?
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Financial Accounting An Introduction
Authors: Mr Barry Elliott, Mr Augustine Benedict
2nd Edition
0273737651, 9780273737650
