Question

Jordan and Mike are both planning on attending university in Calgary. Jordan's parents rent him a one bedroom apartment for $750 per month. Mike's parents bought a 3 bedroom house for $285000 that required a down payment of 10% and offered a mortgage amortized over 15 years at an annual rate of 4.15% compounded semi-annually for a 5 year term. They rented the other two rooms out for $600 per month. The house depreciated in value by 1.5% a year and the cost of taxes and maintenance averaged $3000 a year.

a) How much was left to pay on the mortgage after 5 years?

Please help. Thank you.

Answer 1

$750 multiplied by 60 months=$45000