Jordan and Mike are both planning on attending university in Calgary. Jordan's parents rent him a one bedroom apartment for $750 per month. Mike's parents bought a 3 bedroom house for $285000 that required a down payment of 10% and offered a mortgage amortized over 20 years at an annual rate of 4.15% compounded semi-annually for a 5 year term. They rented the other two rooms out for $600 each per month. The house depreciated in value by 1.5% and the cost of taxes and maintenance averaged $3000 a month.
a) How much did Jordan's parents pay in rent over 5 years?
- $45,000
b) What were the monthly mortgage payments on Mike's parents house?
- N= 240 I%=4.15 PV=256,000 PMT= -1569.88 FV=0 P/Y=12 C/Y=2
****Is this correct?
c) How much was left to pay on the mortgage after 5 years? (use your financial application to fill in the appropriate inputs)
d) How much had the house lose value over the 5 years?
e)Assuming the house was sold at market value after 5 years, How much would Mikes parents receive from the sale?
f) How much did Mike's parents have to subsidize the rent for the 5 years term?
These last 4 I'm having trouble with, I have never done a mortgage question before and I'm at a total loss.....Can someone please help explain it a little better and help me set up the question???
Thanks in Advance
