Devoir n°1 FIN3500
Étude de cas : Devoir n°1 FIN3500. Recherche parmi 298 000+ dissertationsPar Quentin Jegou • 20 Novembre 2019 • Étude de cas • 264 Mots (2 Pages) • 391 Vues
Assignment n°1 Problem 1
a)
EAR = (1+APR/m)m -1
= (1+0.053/2)2 - 1 = 0.0537
Effective monthly rate = (1+0.0537)1/12 - 1 = 0.004368=0.44% Monthly payment :
PV = CF (1 - 1/(1+r)t) /r
300,000 = CF*(1 - 1/1. 0.44%240) /0.44% CF = 300,000/148.5057 = $2,020.26
b)
FV (Original Balance) = 300,000*(1+0.44%)7*12 = $432,660
FV (Monthly) = (2020.26/0.44%)*((1+0.44%)7*12-1) = $204,492
Outstanding principal balance at the end of the mortgage term of 7 years=228,168
c)
FV (owe) = 300,000+(1+0.44%)2*12=333,087
FV (As of 2) = (2,020.26/0.44%)*((1+0.44%)12*2-1)=51,002
They still owe 2 years after they took out this mortgage
=333,087-51,002=282,084
d)
Yea r | Mont h | Beginning of month balance | Payment s | Interest | Amortization (Payment - interest) | End of month balance |
1 | 1 | 300,000 | 2,020 | 1,310.60 | 710 | 299,290 |
2 | 299,290 | 2,020 | 1,307.50 | 713 | 298,578 | |
3 | 298,578 | 2,020 | 1,304.39 | 716 | 297,862 | |
4 | 297,862 | 2,020 | 1,301.26 | 719 | 297,143 | |
5 | 297,143 | 2,020 | 1,298.12 | 722 | 296,421 | |
6 | 296,421 | 2,020 | 1,294.96 | 725 | 295,695 | |
7 | 295,695 | 2,020 | 1,291.80 | 728 | 294,967 | |
8 | 294,967 | 2,020 | 1,288.61 | 732 | 294,235 | |
9 | 294,235 | 2,020 | 1,285.42 | 735 | 293,500 |
Yea r | Mont h | Beginning of month balance | Payment s | Interest | Amortization (Payment - interest) | End of month balance |
10 | 293,500 | 2,020 | 1,282.21 | 738 | 292,762 | |
11 | 292,762 | 2,020 | 1,278.98 | 741 | 292,021 | |
12 | 292,021 | 2,020 | 1,275.74 | 745 | 291,276 | |
2 | 13 | 291,276 | 2,020 | 1,272.49 | 748 | 290,529 |
14 | 290,529 | 2,020 | 1,269.23 | 751 | 289,778 | |
15 | 289,778 | 2,020 | 1,265.94 | 754 | 289,023 | |
16 | 289,023 | 2,020 | 1,262.65 | 758 | 288,266 | |
17 | 288,266 | 2,020 | 1,259.34 | 761 | 287,505 | |
18 | 287,505 | 2,020 | 1,256.01 | 764 | 286,741 | |
19 | 286,741 | 2,020 | 1,252.68 | 768 | 285,973 | |
20 | 285,973 | 2,020 | 1,249.32 | 771 | 285,202 | |
21 | 285,202 | 2,020 | 1,245.95 | 774 | 284,428 | |
22 | 284,428 | 2,020 | 1,242.57 | 778 | 283,650 | |
23 | 283,650 | 2,020 | 1,239.17 | 781 | 282,869 | |
24 | 282,869 | 2,020 | 1,235.76 | 784 | 282,084 | |
3 | 25 | 282,084 | 2,020 | 1,232.34 | 788 | 281,297 |
34 | 274,868 | 2,020 | 1,200.81 | 819 | 274,049 | |
35 | 274,049 | 2,020 | 1,197.23 | 823 | 273,225 | |
36 | 273,225 | 2,020 | 1,193.63 | 827 | 272,399 |
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