MGFC10H3 Lecture 7: Assignment 1 WORD FILE
MGFB10H3 Assignment 1
Mussab Tauseef – 999771402 (student Number)
October 1, 2013
Esther Eiling
Lecture 02
1 – Her monthly payment would be $1,232.20
2 – she has paid $83,397.59 towards her principle thus far (8 years in).
The total amounts of her payments is $1232.20*96 = 118291.20. Since $83.397.59
has went towards the principle, the difference of $34892.61 is the amount of
interest paid thus far.
3 – She would have paid $38614.37 in interest over 8 years under the 10year
mortgage, which is 3721.76 more than the 25year term. But the mortgage under the
10 year term is almost paid off.
4 – If she chose to pay $1282.20 instead of $1232.20, she would have paid
$86,781.68 towards her mortgage. This would mean that her remaining balance
would be $144000-86781.68, which is 57218.32
5 – It would take 260 months to pay off the mortgage (or 21.67 years) if she were to
pay $1282.20 per month.
6 – She should refinance her mortgage to the new 25year plan because the interest
rate is lower. Because she is a RBC worker and doesn’t need to pay the penalty, this
will save her money in the long run by lowering her monthly mortgage payment as
well as reducing the amount in interest paid.
7 – If she were to consider the 10 year term, she should definitely go for it. She is
used to paying $1232.20 for her monthly payment. If she were to refinance on the
10 year term, and avoid the penalty, her payment would actually go down (thanks to
the lower interest rate) AND she will be mortgage free much faster.
Document Summary
Lecture 02 mortgage, which is 3721. 76 more than the 25year term. The total amounts of her payments is . 20*96 = 118291. 20. Since . 397. 59 has went towards the principle, the difference of . 61 is the amount of interest paid thus far. 1 her monthly payment would be ,232. 20. 2 she has paid ,397. 59 towards her principle thus far (8 years in). 3 she would have paid . 37 in interest over 8 years under the 10year. 4 if she chose to pay . 20 instead of . 20, she would have paid. 5 it would take 260 months to pay off the mortgage (or 21. 67 years) if she were to. 6 she should refinance her mortgage to the new 25year plan because the interest rate is lower. Because she is a rbc worker and doesn"t need to pay the penalty, this. 7 if she were to consider the 10 year term, she should definitely go for it.
