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

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

    Uploaded by

    DilrajSingh
    133 views4 pages
    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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    PROJECT 2

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    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.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    133 views4 pages

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

    Uploaded by

    DilrajSingh
    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.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    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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