Three years ago the biggs purchased a house for So made a down payment mortgage with BMO for the balance. They amortized the mortgage over 25 years at 3.2% compounded semi-annually for a 3-year term. (a) Calculate their monthly payment. The bank rounds the payment up to the next dollar. (b) How much of the 36th payment was interest? Express your answer in 2 decimal places and do not enter "$" sign. (c) How much interest did they pay in the 3rd year (Year 3) of the mortgage? Express your answer in 2 decimal places and do not enter "$" sign. e) After making three years of payments, they made a lump-sum payment to reduce the balance owing to $460,000. How much was the lump-sum payment? Express your answer in 2 decimal places and do not enter "$" sign.
Three years ago the biggs purchased a house for So made a down payment mortgage with BMO for the balance. They amortized the mortgage over 25 years at 3.2% compounded semi-annually for a 3-year term. (a) Calculate their monthly payment. The bank rounds the payment up to the next dollar. (b) How much of the 36th payment was interest? Express your answer in 2 decimal places and do not enter "$" sign. (c) How much interest did they pay in the 3rd year (Year 3) of the mortgage? Express your answer in 2 decimal places and do not enter "$" sign. e) After making three years of payments, they made a lump-sum payment to reduce the balance owing to $460,000. How much was the lump-sum payment? Express your answer in 2 decimal places and do not enter "$" sign.
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 25PROB
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