### Jordan And Mike Are Both Planning On Attending University In Calgary Jordan S Pa

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 and made a down payment of 10%. The remaining amount was mortgaged over 20 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 each per month. The house depreciated in value by 1.5% a year and the cost of

taxes and maintenance averaged \$3000 a year. Show step by step

c. How much was left to pay on the mortgage after 5 years?

(use your financial application and fill in the appropriate inputs)

N  ________ I%  _________ PV  ________ PMT  __________

FV  ________ P / Y  ________ C / Y  _________

d. How much had the house lose in value [money] over the 5 years?

e. Assuming the house was sold at market value after 5 years, how much would Mike’s parents