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Jordon and Mike are both planning on attending university in Calgary. Jordon's prents 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 amorized over 15 years at an annuak rate of 4.15% compounded semi-annually for a 5-year term. They rented the otehr two rooms out for \$600 per month. The house depreciated in value by 1.5% a year and the cost of taxes and maintenance averaged \$3000 a year.

a) how much did Jordon's parents pay in rent over the 5 years?

ANS = 45000

b) What were the monthly mortgage on Mike's parents' house? (use your financial application and fill in the appropriate inputs)

N = 180 I% = 4.15 PV = 256500 PMT = -1569.87 FV = 0 P /Y = 12 C /Y = 2

ANS = \$1569.87

c) how much was left to pay on the mortgage after 5 years? (use financial application and fill in the appropriate inputs)

d) how much had the house lost in value (money) over the 5 years?

e) Assuming the house was sold at market value after 5 years, how much would Mike's parents receive from the sale?

f) How much did Mike's parents have to subsidize the rent for the 5-year term?

Thank you so much!!!!!

Aug 3, 2022

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See this link which might be exactly the same question and answer: