GROUP ASSIGNMENT COVER SHEET

STUDENT DETAILS

Student name: Nguyễn Phú Qui Student ID number: 22003163

Student name: Trần Quang Huy Student ID number: 23005009

Student name: Trần Thái Dương Student ID number: 23006027

Student name: Phan Nguyễn Nam Anh Student ID number: 23005726

Student name: Nguyễn Hoàng Phương Anh Student ID number: 23005051

Student name: Vũ Lan Nghi Student ID number: 23005188

UNIT AND TUTORIAL DETAILS

Unit name: 72-hour Take-home Exercise - Group 7 Unit number: CF-T22324PWB-2

Tutorial/Lecture: Tutorial Class day and time: Thursday 8:00-11:00
Lecturer or Tutor name: Vo Hong Duc
ASSIGNMENT DETAILS

Title: 72-hour Take-home Exercise 1

Length: Due date: 1/2/2024 Date submitted: 1/2/2024

DECLARATION
I hold a copy of this assignment if the original is lost or damaged.
I hereby certify that no part of this assignment or product has been copied from any other student’s work
or from any other source except where due acknowledgement is made in the assignment.
I hereby certify that no part of this assignment or product has been submitted by me in another
(previous or current) assessment, except where appropriately referenced, and with prior permission
from the Lecturer / Tutor / Unit Coordinator for this unit.
No part of the assignment/product has been written/ produced for me by any other person except
where collaboration has been authorised by the Lecturer / Tutor /Unit Coordinator concerned.
I am aware that this work may be reproduced and submitted to plagiarism detection software programs
for the purpose of detecting possible plagiarism (which may retain a copy on its database for future
plagiarism checking).

Student’s signature: Vũ Lan Nghi

Student’s signature: Nguyễn Hoàng Phương Anh
Student’s signature: Phan Nguyễn Nam Anh
Student’s signature: Trần Quang Huy

Student’s signature: Trần Thái Dương

Student’s signature: Nguyễn Phú Qui
Note: An examiner or lecturer / tutor has the right to not mark this assignment if the above declaration has
not been signed.
a. What monthly payments will be required with the new loan?
Old mortgage
C=$1,433
APRold=12%rold=12%12=1% monthly
t=3012=360 months
Remaining balance after 5 years
PV=C1-(1+r)-tr=1,4331-(1+0.01)-3000.01=$136,058.41
New mortgage
APRnew=7.2%rnew=7.2%12=0.6% monthly
t=3012=360 months
PV=C1-(1+r)-trC=PV1-(1+r)-tr=136,058.411-(1+0.006)-3600.006=$923.54
The new monthly payment is $923.54

b. If you still want to pay off the mortgage in 25 years, what monthly payment should you
make after you refinance?
t=2512=300 months
C=PV1-(1+r)-tr=136,058.411-(1+0.006)-3000.006=$979.06
The new monthly payment is $979.06

c. Suppose you are willing to continue making monthly payments of $1433. How long will
it take you to pay off the mortgage after refinancing?
PV=C1-(1+r)-tr136,058.41=1,4331-(1+0.006)-t0.006 t=140.96 months
It takes about 140.96 months for you to pay off the mortgage after refinancing if you are
willing to continue making payments of $1433

d. Suppose you are willing to continue making monthly payments of $1433, and want to
pay off the mortgage in 25 years. How much additional cash can you borrow today as
part of the refinancing?
PV=C1-(1+r)-tr=1,4331-(1+0.006)-3000.006=$199,141.54
Additional cash can be borrowed=$199,141.54-$136,058.41=$63,083.13
Additional cash you can borrow today as part of the refinancing is $63,083.13