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!!!!!
