Calculate the principal balance at the end of the five year

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Lionel purchased a house for $325,000. He made a downpayment of 15.00% of the value of the house and received a mortgage for the rest of the amount at 5.32% compounded semi-annually amortized over 15 years. The interest rate was fixed for a 5 year period.

Question a. Calculate the monthly payment amount.

Option 1: $2,222.45

Option 2: $2,214.38

Option 3: $2,230.62

Option 4: $7,413.99

Question b. Calculate the principal balance at the end of the 5 year term.

Option 1: $206,275.67

Option 2: $207,027.14

Option 3: $207,787.88

Option 4: $266,781.00

Question c. Calculate the monthly payment amount if the mortgage was renewed for another 5 years at 3.12% compounded semi-annually?

Option 1: $2,001.34

Option 2: $2,016.01

Option 3: $2,008.63

Option 4: $2,588.38

Reference no: EM132575755

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