Your employer has just transferred you to beautiful Winnipeg. Since you anticipate being at the branch here for some time, you have decided to purchase a condo downtown.The condo you want to purchase is being listed at $385,000. The mortgage officer at your financial institution has informed you that the current rate on mortgages is 4.80%, compounded semiannually. Fortunately, you are a prudent saver and have managed to amass the 10% down payment in your savings account.You have decided to take the mortgage on an 18year amortization period hoping that this will keep everysecond week (26 payments/year)payments manageable.

a.What is your bi-weekly (every second week)interest rate for this mortgage? (1 mark)

the bi-weekly interest rate for this mortgage is 0.1826%

b.What is the biweekly payment for this mortgage (2 marks)

The bi-weekly payment for this mortgage is $1101.90

c.What is the effective per annum interest rate that you are paying on this mortgage? (1 mark)

the effective per annum interest rate is 4.86%

d.How much of your first payment will be principal? (2 marks)

the first payment principal is $469.19

e.If your employer moves you again in 4 years and you must sell your condo, how much principal do you still owe the bank? (2 marks)