schedule for a Canadian house mortgage ls usudlly detef e usng 7 marks) The payment...
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schedule for a Canadian house mortgage ls usudlly detef e usng 7 marks) The payment a 20, 25 or 30 year repayment period, but the interest rate stated in the mortgage is not guaranteed for that length of time. The interest rate will be set for a shorter period (up to 7 years) and at the end of that time, the remaining mortgage (outstanding principa) can be paid in full or renegotiated at a new interest rate. a. (1.5 marks) On January 7, 2019, RBC's 4-year fixed mortgage rate was 3.74% compounded semi-annually. If you choose to make monthly mortgage payments (.e. 12 payments in a year), what is the nominal rate of interest compounded monthly (please give interest rate to at least 2 decimals)? (2 marks) If you require a mortgage of $350,000, what is your monthly mortgage payment over a 30 year repayment period? b. C. (0.5 mark) Without undertaking any calculations, if mortgage payments were made at the beginning of the month instead of the end of the month, would the mortgage payment be higher or lower than what you calculated in b)? Why? (3 marks) After 4 years the mortgage must be renegotiated. What is the outstanding principal to be refinanced
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