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# ordan and Mike are both planning on attending university in Calgary. Jordan's parents rent him a one bedroom apartment for \$750 per month. M

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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???

Guest Oct 13, 2017
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Do an amortization schedule such as this one and you can get most of your answers from it:

http://www.calculator.net/amortization-calculator.html?cloanamount=256500&cloanterm=20&cinterestrate=4.11456819&printit=0&x=46&y=19

Guest Oct 13, 2017

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