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Diana purchased a house for $425,000. He made a down payment of 30.00% of the value of the
house and received a mortgage for the rest of the amount at 6.42% 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
5.62% compounded semi-annually? Round to the nearest cent

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Diana's House Purchase & Mortgage Calculations

  • 1. Diana purchased a house for $425,000. He made a down payment of 30.00% of the value of the house and received a mortgage for the rest of the amount at 6.42% 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 5.62% compounded semi-annually? Round to the nearest cent