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You just borrowed $50,000 to renovate your home. The terms of the loan are: APR…

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Wize University Introduction to Finance Textbook > Time Value of Money

Amortized (Instalment) Loan

6 Activities

You just borrowed $50,000 to renovate your home. The terms of the loan are:
  • APR: 5% compounded monthly
  • 5 years
  • bi-weekly payments
How much should you add to your bi-weekly payment if you wish to pay off the loan in 4 years instead of 5.
More Amortized (Instalment) Loan Questions:
Which of the following statements is true about Canadian mortgages?
Match the terms to the correct definition.
Which of the following statements if false?
Homework Problem #6
Mary purchased a condo in Laval 5 years ago. At the time she was given 5-year fixed rate mortgage with an APR of 4% and an amortization period of 30 years. She is renewing her mortgage today and rates have dropped to 1.2%. What fraction of her 17th payment on the new mortgage will go towards reducing her debt?
You just borrowed $40,000 to go on vacation. The loan carries an 8% interest rate compounded semi-annually. You will make weekly payments for 3 years.
How much is your weekly payment?
You just borrowed $20,000 to buy a car. The loan carries a 7.5% interest rate compounded monthly. You will make monthly mortgage payments for 5 years.
How much is your monthly payment?
You've just been approved for a mortgage to buy your first home in Montreal, Canada. The purchase price of the home is $760,000 and you plan to make a 20% down payment. The term of the mortgage is 5 years and carries a 1.99% interest rate. The amortization period on the mortgage is 30 years. How much will you owe at the end of the first mortgage term?
Round your work to at least 4 decimal places and your final answer to 2 decimal places.
You just purchased a car for $149,000. The car is financed over 8 years at an APR of 2.99%, compounded monthly. How much was your down payment if your monthly payment is $1,500?
Round your final answer to 2 decimal places
You are taking a mortgage to purchase a condo, the mortgage is quoted at 3% interest compounded semi-annually. The term of the mortgage is 4 years and the amortization period is 25 years. What fraction of your 17th monthly payment will go towards repaying the principal on the mortgage?
Enter your answer as a percentage but omit the symbol. For example, enter 7.44 for 7.44%.
What is the monthly payment on the following car loan:
$50,000 principal
6 year term
What is the appropriate monthly interest rate to use to calculate the payment on the following car loan:
$50,000 principal
6 year term
Bob took out a mortgage to buy a house in Brossard, Quebec. The purchase price of the home is $1,000,000 and Bob will put a 20% down payment and finance the rest. The term of the mortgage is 4-years and it is a fixed rate mortgage with an APR of 6.5%. The amortization period on the mortgage is 30 years.
Bob took out a mortgage to buy a house in Brossard, Quebec. The purchase price of the home is $1,200,000 and Bob will put a 10% down payment and finance the rest. The term of the mortgage is 5 years and it is a fixed rate mortgage with an APR of 4%. The amortization period on the mortgage is 30 years.