MAP4C. Annuities and Mortgages Assignment.

Name_____________ Date________

Answers PART 4 : Questions 44-46. Problem Solving Questions Involving

Personal Finance. (Continued from last class.)
Answer all questions. Use additional paper as required and attach them to this report.
You may have to complete some of this work on your own time, using computers,
and/or the internet.
[Curriculum: Generate an amortization table for a mortgage, using a variety of tools and strategies (e.g., input data into an
online mortgage calculator; determine the payments using the TVM Solver on a graphing calculator and generate the
amortization table using a spreadsheet), calculate the total interest paid over the life of a mortgage, and compare the total
interest with the original principal of the mortgage.]

44. Task: Use the Government of Canada online mortgage calculator available at
www.fcac.gc.ca to create a mortgage payment schedule for a Canadian mortgage
amount between $150 000 and $350 000 at 5%/a, amortized for 25 years. Use a 5-year
term. Show the results of the Calculation Summary and the results of the Mortgage
Summary. [10 marks]
1. Follow link to FCAC mortgage tool and enter an amount. For example,

2. Select Calculate to create the mortgage payment schedule; and to show the
amortization summary table. For example,

MAP4C. Annuities and Mortgages Assignment. Name_____________ Date________

[Curriculum: Making comparisons between mortgage options. Determine, through investigation using technology (e.g.,
TVM Solver, online tools, or financial software), the effects of varying payment periods, regular payments, and interest
rates on the length of time needed to pay off a mortgage and on the total interest paid.]

45. Task: Create mortgage schedules using the mortgage tools available at
www.fcac.gc.ca , then use these reports to calculate the interest saved on a $100 000
Canadian (compounded semi-annually) mortgage with monthly payments, at 6% per
annum, when it is amortized over 20 years instead of 25 years. Clearly state your
findings for each. Use a 5-year term.
[10 marks]
20 year Amortization
25 year Amortization
Interest Paid: $70925.23
Interest Paid: $91941.99
Difference: $91941.99 $70925.23 = $21016.76
Therefore, $21016.76 will be saved on a $100000CAN mortgage at 6% per year, if amortized
over 20 years rather than 25 years.

20 year Amortization

MAP4C. Annuities and Mortgages Assignment. Name_____________ Date________

25 year Amortization of $100000 at 6%

MAP4C. Annuities and Mortgages Assignment. Name_____________ Date________

46. RESEARCH: Research a town-home, or single detached hope, for sale in Durham
Region. Can a couple afford the home on a family income of $50 000 per year? $90 000
per year? Report on your Investigation. Explain your reasoning. Provide mathematical
evidence to support your reasoning. ANSWERS will vary. See Rubric below.
Online, find a home for sale in the range of $200000 to $400000;
Start a Word document file to write a report;
Determine the down payment amount at 10% of the home
price:_______________;
Determine the amount of the mortgage required:_____________________;
Determine the monthly payment required: _________________;
Write a monthly budget showing income, expenses, and balance remaining.
Include $1200 for food; monthly mortgage payment amount; utilities at
$400/mo.; phone at $80/mo; clothing at $100/mo.; entertainment at $100/mo.;
maintenance at $100/mo.; transportation at $200/mo.; plus any other items that
you care to include;
Submit a report summarizing your findings. Can this couple financial afford such
a home on their income? JUSTIFY your conclusions.
Q46. Marking Rubric

Level 1
(50-59) 5

Level 2
(60-69)

Thinking and Inquiry. Ability to

comprehend the situation and find
information.

Little
evidence
provided.
Substantiall
y below
standard
expected.
Little, or
incorrect,
mathemati
cal
reasoning
is evident.

Some
evidence
provide, but
lacks detail.

Application of mathematical
reasoning.
(Down payment issues
addressed.)
(Payment schedule showing
monthly principal, interest, and
balance owing is included).
(Other monthly financial issues
addressed food, etc.)
Communication:
(Report is clearly written and
effectively communicated with
proper spelling
, punctuation, and grammar;
Report includes: a photo of the
home for sale ad; an fcac.gc.ca
mortgage payment schedule; a
viable 12-month budget; and a
written explanation and summary.
Total (out of 30)

Little or no
written
statements
or evidence
to support
the
financial
argument.

Some
mathematical
reasoning is
evident;
Reasoning
may contain
some small or
non-significant
errors.
Some written
statements to
support or
evidence to
support the
financial
argument.

Level 3
(70-79)
7
[Meets Prov.
Standard]
Sufficient
inquiry
evidence
provided.

Level 4
(80 100)
10

Good
mathematical
reasoning
clearly evident.

Thorough mathematical
reasoning is evident and
referenced in the report.

Substantial
written
statements or
evidence to
support the
financial
argument.

Thorough written
statements and evidence
clearly support the
financial argument.

Thoroughly researched
and documented. Student
clearly understands the
scope of the assignment.