# Mathematics homework help

ASSIGNMENT VERSION # 5
Assume that your group represents the Credit Manager of a North Vancouver Credit
Union and that Mr. Wayne Gretski, on his way through Vancouver to the 2022 Olympics,
has asked that you analyze the history of his previous and current mortgage transactions.
a) Exactly 10 years ago, Mr. Wayne Gretski purchased a beautiful condo at Whistler for
775,000 and made a down payment of \$335,000. The balance was mortgaged at the
Canada Bank at 6.25% compounded semi-annually with monthly payments over 25
years. The interest rate was fixed for a 5 year term, and lump sum payments were
allowed at the end of each 5 years without penalty.
i) Calculate the monthly payment for the first 5 years. ROUND UP TO THE NEXT
CENT.
ii) Construct an amortization schedule for the first 60 months. (A schedule
showing only the first 3 months, and months 57 to 60 inclusive, with 60 month
totals is also required.)
iii) Calculate the principal outstanding at the end of the first 5 years.
iv) What percentage of the first five years total monthly payments went to
reduction of the debt, and what percentage went to interest?
v) What percentage of the debt has been paid off by the first five years of
payments?
) Exactly five years ago, Wayne made a lump-sum payment of \$160,000 (in addition to
the regular payment), and the interest rate was also changed to 5.45% compounded
semi-annually.
i) Calculate the amount being refinanced.
ii) Calculate the monthly payment for the second 5 year period. ROUND UP TO
THE NEXT DOLLAR.
iii) How much total interest did Wayne pay in the past two years?
c) Wayne’s mortgage has just come up for further renewal. He has decided to take
advantage of your relatively low rates and wishes to investigate tranferring it to your
North Vancouver Credit Union branch that charges 5.10% compounded monthly,
payable over 15 years.
i) Calculate the size of the principal balance being refinanced.
ii) Calculate the size of the new monthly payment.
iii) Wayne seems amazed that he has only repaid a small fraction of his original
loan. You will draw a large scale, fully labelled graph that visually explains to
Wayne how the loan has been amortized over the past ten (10) years. You are
only expected to plot the annual balances owing.
This assignment is due Thursday, May 21. Late assignments will be
penalized 50% per day (or part thereof). Please keep a duplicate of

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