Math Class 2 (Homework)

MATH CLASS 2- HOMEWORK www.GOBCrealestate.com MATH 2- HOMEWORK GOBC Real Estate • Mortgage Notes • PAYMENT • N • OUTSTANDING BALANCE • PRINCIPAL REDUCTION

MATH CLASS 2- HOMEWORK PAYMENT_______________________________________________________________________ 16. A $70,000 mortgage loan, written at a nominal rate of 17% per annum, compounded annually, has a two-year contractual term. Payments are made monthly and are based on a 20-year amortization period. Payments are rounded to the next higher dollar. What is the size of the required payments ? (1) $ 975.00 (2) $ 997.00 (3) $ 1,027.00 (4) $ 964.00 17. Ally has recently received an interest only loan for $75,000 to operate a food cart in downtown Vancouver. The loan has an interest rate of 6% per annum, compounded monthly, and requires interest only payments every month. How much are the monthly interest only payments that Ally makes if the duration of the loan is two years? (1) $750 (2) $500 (3) $375 (4) $1,000 18. Calculate the monthly payment required for the following mortgage: Principal of $40,000; 14% per annum, compounded semi-annually; amortization period of 20 years. (1) $486.47 (2) $486.08 (3) $469.56 (4) $497.41 19. Brad has recently received an interest only loan for $100,000 to operate a food cart in downtown Vancouver. The loan has an interest rate of 8% per annum, compounded monthly, and requires interest only payments every month. How much are the monthly interest only payments that Brad makes if the duration of the loan is two years? (1) $1,333.33 (2) $666.67 (3) $500.33 (4) $1,200.67 Homework for MATH 2: 1). Solve Payment questions pages 24-25 2). Solve N questions pages 26 3). Solve Outstanding (OSB) and Principal Reductions (PR) Questions pages 27-28 4). Watch the videos for the next class (Math class 3) Answers: 16(4), 17(3), 18(2), 19(2) 24 0

©2021 GOBC Training LTD N_____________________________________________________________________ 27. Joanne Carmichael borrows $15,000 at a periodic interest rate of 0.5% per month. She agrees to repay $450 per month. For how many FULL years will Joanne have to make payments? (1) 3 (2) 9 (3) 27 (4) 37 28. A mortgage was written for $30,000 with interest at j2 = 12% and monthly payments of $325.00 for as long as necessary. How many payments of $325.00 were required? (1) 238 (2) 242 (3) 236 (4) 237 29. Joe Carmichael borrows $11,000 at a periodic interest rate of 0.75% per month. He agrees to repay $335 per month. For how many FULL years will Joe have to make payments? (1) 3 (2) 9 (3) 27 (4) 37 30. A loan has an original loan amount of $12,500, a term of 7 years, an interest rate of 16.5% per annum, compounded semi-annually and has monthly payments of $169.50. What is the amortization period of this loan? (1) 84 months (2) 300 months (3) 299.244200328 months (4) impossible to determine from the information provided Answers: 26(3), 27(1), 28(4), 29(1), 30(3) 26 :

MATH CLASS 2- HOMEWORK ©2021 GOBC Training LTD OUTSTANDING BALANCE_________________________________________________ 31. A borrower is arranging a third mortgage with Brass Knuckle Finance Company. The loan amount is $17,000, the interest rate is 21.5% per annum, compounded semi-annually, the amortization period is 15 years and the contractual term is 2 years. If payments are made monthly and rounded up to the next higher $10 , calculate the outstanding balance at the end of the loan term. (1) $16,542.73 (2) $16,579.53 (3) $16,464.31 (4) $16,758.22 32. A borrower is arranging a third mortgage with Brass Knuckle Finance Company. The loan amount is $17,000, the interest rate is 21.5% per annum, compounded monthly, the amortization period is 15 years and the contractual term is 2 years. If payments are made monthly, rounded up to the next higher $10, calculate the outstanding balance at the end of the loan term. (1) $16,614.51 (2) $16,317.91 (3) $16,839.34 (4) $16,542.73 33. A mortgage was written for $48,000.00 with an interest rate of j2 = 8%, an amortization period of 15 years and equal monthly payments. Calculate the balance owing at the end of five years. (1) $38,506.94 (2) $37,724.15 (3) $47,289.10 (4) $46,181.28 34. Big Al negotiated a mortgage loan of $99,362.47, with an amortization period of 20 years, an interest rate of 15% per annum, compounded semi-annually, and monthly payments. What would be the outstanding balance at the end of the three-year term of this loan? (1) $96,368.19 (2) $96,195.19 (3) $99,362.48 (4) $93,177.00 35. A borrower is arranging a third mortgage with Brass Knuckle Finance Company. The loan amount is $17,200, the interest rate is 21.5% per annum, compounded semi-annually, the amortization period is 15 years and the contractual term is 2 years. If payments are made monthly, rounded up to the next higher $10, calculate the outstanding balance at the end of the loan term. (1) $16,765.20 (2) $16,579.52 (3) $16,464.31 (4) $16,480.70 Answers: 31 (3), 32(4), 33(2), 34(2), 35(1) 27 0

18 . N 20N # J , = 14 14 # NOM IHR PMT = 12 2 # PYR PV 40,000 - # EFF ILYT 486.07 -1 > 486.08 12 # PYR FV 0 ? - # NOM PHR A 20 T 25 . N anything Jz = 21.5 21.5 # NOM IYIR PM -1=12 2 # PYR PV 1,410,000 - # EFF 12 # PYR p 24,200.050-1 > 24200.0° - # Nom FV 1,410,000--1 PHR A T months 27 . N_ 33,57 J ,z = 0.5 0.5 # NOM It's PMT = 12 12 # PYR PV 15000 ¥ # EFF PMT 450 I 33.57--1>2.79 12 # PYR FV OI 12 ¥ - # NOM PIR 3 years A T 30 . -N 299.2442 . . . Jz = 16.5 16.5 # NOM IYA PMT = 12 2 # PYR PV 12500 # EFF PMT 169.50=1 12 # PYR FV OI # NOM PHR A T 7

33 . N IS # N Jz = 8 8 # NOM ITR PMT = 12 2 # PYR PV 48000 - # EFF ILYI 455.11 ? -1*455.12-1 12 # PYR FV OI - # NOM PHR A 15 5 1- → FY T 5 # N = 37,724.151 37 . N 20 # N Jz = 17.5 17.5 # NOM IHR PM -1=12 2 # PYR PV 84000 # EFF P 1225.35 → 12261 PMT 12 # PYR FV OI # NOM PHR A 20 5 1- → FY T 5 # N = 79,949.331 38 . N ZOHN Jz = 12 12 # NOM IHR PM -1=12 2 # PYR PV 159,000 # EFF ILYI 1718.7481 -17 1718.751 PMT 12 # PYR FV OI # NOM pin A 20 1- 5 5 1- → FY # N = 145,454.101 minor mistake + 159,000 = 13,545.9