Task 1
A young married couple with sufficient earnings (i.e. for being granted mortgage credit) decided to build a little single-family house. According to preliminary calculation, for implementation of the plans they need CZK 3,100,000.00. Later they find out that their parents are willing to give them the amount of CZK 600,000.00. The bank offers them interest rate in the amount of 4.9% yearly and the date of maturity 20 years.
Determine
-
the amount of yearly annuity instalment and draw up the schedule for repayment of principal,
- the amount of monthly overdue annuity instalment,
- yearly margin of profit of the bank if you know that the bank charges for credit approval 0.90% of a lent amount (at least CZK 9,000.00, at most CZK 30,000.00) and for operation of the account CZK 150.00 a month.
Note: In case of mortgage credits, the banks do not provide the clients with RPSN, they only state total cost of the credit.
Task 2
A young married couple from example 1 considers another alternative for paying of the debt in the amount of CZK 2,500.000.00. They consider mortgage credit with the same interest rate, i.e. 4.9% but the date of maturity is extended from 20 years to 30 years. The married couple takes out life insurance when in reaching a specified age (after 20 years from signature of the policy) they will receive CZK 980,600.00. They assume that after 20 years with this amount they will repay a part of the debt. Determine
- the amount of monthly overdue annuity instalment of mortgage credit,
- which of the above alternatives is a better one, whether the alternative with the date of maturity 20 years or the alternative with the date of maturity 30 years and repayment of a part of the credit by means of life insurance.
Task 3
Mr Tomáš Potočný (34 years of age) and his wife Martina Potočná (29 years of age) would like to buy car LAND ROVER DEFENDER. In order to assure that their dream will come true they need capital in the amount of 1,100,000.00. The young couple also long for flat TV set SONY for CZK 45,000.00, Mr Potočný for a fishing tour to Alaska in the amount of CZK 90,000.00 and Ms Potočná wants to use CZK 65,000.00 for reconstruction of a children's room of their five-year-old son Jakub. The young couple wants to cover necessary capital in the amount of CZK 1,300,000.00 by means of credit and their financial situation enables them to repay yearly at most CZK 144,000.00. Due to the fact that mortgage credits are determined for various real estate transactions and consumer credits are limited with the amount of a borrowed amount, the married couple decides for American mortgage with interest rate 8.3% p.a. Determine, how long they will repay their “dream”?
- consider yearly instalments, at all times to the end of the year
- consider overdue monthly repayment and monthly instalments in the amount of CZK 12,000.00
