A Demand (Variable Rate) Mortgage of $137 000

question 34

Essay

A demand (variable rate) mortgage of $137 000.00 is amortized over 20 years by equal monthly payments. After 21 months the original interest rate of 6% p.a was raised to 6.6% p.a. Three years after the mortgage was taken out, it was renewed at the request for the mortgagor for a five-year term at a fixed rate of 7.25% p.a.
a) Calculate the mortgage balance after 21 months.
b) Compute the size of the new monthly payment at the 6.6% rate of interest.
c) Determine the mortgage balance at the end of the five-year term.

Explain how groups use standards, like reference groups, to evaluate themselves and others positively or negatively.

Recognize the role of social change in influencing group dynamics and individual identities.

Understand the concept and implications of social influence in various contexts.

Explain the dynamics and effects of conformity within groups and society.

---

Definitions:

Product Markets

Venues where goods and services are traded between producers and consumers.

Rate Of Return

A measure of the profitability of an investment, calculated as the percentage ratio of profit or loss to the initial investment cost.

Assigned

In derivatives trading, it refers to the notification that an option holder has decided to exercise their option.

Financial Executives

Individuals who manage financial planning, decision making, and control in an organization.