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Project 2 Real Estate Finance: PROP: 1023 LANGARA ID: 100360828

This document is a project submission for a real estate finance course. It addresses three questions regarding a $600,000 mortgage with an interest rate of 4% compounded monthly. The first question asks for the monthly payment, which is calculated to be $3,157. The second question asks for the outstanding balance after 12 years (OSB12), which is calculated to be $585,659.53. The third question defines the outstanding amount as the amount owing assuming no payments minus the future value of all payments made.

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152 views4 pages

Project 2 Real Estate Finance: PROP: 1023 LANGARA ID: 100360828

This document is a project submission for a real estate finance course. It addresses three questions regarding a $600,000 mortgage with an interest rate of 4% compounded monthly. The first question asks for the monthly payment, which is calculated to be $3,157. The second question asks for the outstanding balance after 12 years (OSB12), which is calculated to be $585,659.53. The third question defines the outstanding amount as the amount owing assuming no payments minus the future value of all payments made.

Uploaded by

DilrajSingh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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PROJECT 2

REAL ESTATE FINANCE

PROP: 1023

LANGARA ID: 100360828

SUBMITTED BY: SANJEET HOODA

SUBMITTED TO: PROF. DENNIS RAGAUSKAS

LANGARA COLLEGE

VANCOUVER, BC
CANADA
PART -A

QUESTION 1:
ANSWER 1(A):
Assuming the mortgage rate in the given problem be: (J2 = 4%)
Calculation as follows:
Press Output
4 press NOM% 4
2 press P/YR 2
Press EEF% 4.04
12press P/YR 12
Press NOM% 3.967068
600000 PV 600,000
300 N 300
0 FV 0
PMT -3,156.12123
3157 +/- PMT -3,157
Hence, according to the shown calculation the required monthly payment on the loan will
be $3,157.

ANSWER 1(B)
Finding OSB12 =?
As, we solved in the above part the calculation for this continues as:
Press Output
12INPUT press AMORT PER 12-12
=== 585,659.5307

Hence, Finally the OSB12 = $585,659.5307


ANSWER 1(C)
Outstanding Amount = Amount owing assuming no payments – F.V of all payment.
Firstly, Solve for the outstanding assuming no payments are made

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