Question

Ali purchased a house for $450,000. He made a down payment of 15.00% of the value of the house and received a mortgage for the rest of the amount at 6.22% compounded semi-annually amortized over 20 years. The interest rate was fixed for a 5 year period.

a. Calculate the monthly payment amount.

Round to the nearest cent

b. Calculate the principal balance at the end of the 5 year term.

Round to the nearest cent

c. Calculate the monthly payment amount if the mortgage was renewed for another 5 years at 5.52% compounded semi-annually?

Round to the nearest cent

can someone please answer this quickly?

Answer 1

1.
=PMT((1+6.22%/2)^(2/12)-1,12*20,-450000*(1-15%))=2771.53094937603

2.
=FV((1+6.22%/2)^(2/12)-1,12*5,PMT((1+6.22%/2)^(2/12)-1,12*20,-450000*(1-15%)),-450000*(1-15%))=325492.689804116

3.
Case 1: New term is 5 years
=PMT((1+5.52%/2)^(2/12)-1,12*5,FV((1+6.22%/2)^(2/12)-1,12*5,PMT((1+6.22%/2)^(2/12)-1,12*20,-450000*(1-15%)),-450000*(1-15%)))=6210.91611807773

Case 2: New term is 15 years
=PMT((1+5.52%/2)^(2/12)-1,12*15,FV((1+6.22%/2)^(2/12)-1,12*5,PMT((1+6.22%/2)^(2/12)-1,12*20,-450000*(1-15%)),-450000*(1-15%)))=2652.22