Peter and Mary Make a $25 000 Down Payment on a $400

question 69

Essay

Peter and Mary make a $25 000 down payment on a $400 000 home.
What will be the CMHC insurance premium? CMHC charges the following rates on the loan to value ratio: Up to and including 80 percent,1.00 percent;up to 85 percent,1.75 percent;up to 90 percent,2.00 percent;up to 95 percent 2.75 percent.
Illustrate the calculation on the loan insurance premium that Peter and Mary have to pay?

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Definitions:

Surface Area

The amount of surface of an object, generally expressed in square inches, square feet, etc.

Capacitance

The ability of a system to store electrical charge when voltage is applied, typically measured in Farads.

Parallel Connection

A configuration in electrical circuits where components are connected along multiple paths, so the same voltage is applied to each component.

Total Capacitance

In a circuit, the overall capacitance, which can be calculated differently for series and parallel configurations of capacitors, affecting the circuit’s reactance and phase angle.