1. You have taken a loan of $191,000 CAD. The nominal annual rate of interest compounded monthly on this loan is 7.69%. You can afford to pay monthly $ 1591.19 CAD.
How many months it will take you to repay the loan?
Your answer will be an integer value that includes the last monthly payment, which will be smaller than the rest.
2. You have taken a loan of $242,000. You can afford to pay monthly payments of $2341.70. This loan will be repaid in 16 years.
What is the nominal annual rate of interest charged on this loan?
3. Creae a table showing the payment of a mortgage of $280,000 month by month. Create columns for:
- Time (in years)
- Interest (for that month)
- Payment (always the same value)
- Payment against principal
- Remaining Principal
The mortgage is to last 27 years, and the nominal interest rate is 8.82%
(a) What is the monthly payment?
(b) What is the interest paid at the end of the 9th month?
(c) How much of the principal is paid down by the payment made at the end of the 22nd month?
(d) The first time that the portion of a monthly payment that is paying down the principal will be larger than the portion paying interest will occur at the end of month number________?