Internet Application Problems


1		The Canadian Imperial Bank of Commerce has a calculator (Calculate What You Can Afford) on its web site that allows you to enter data relevant to the three key ratios defined in the accompanying Point of Interest on page 97 of your textbook. Instead of entering the monthly mortgage payment, you enter the interest rate you will pay on a mortgage loan and the number of years over which the loan will be repaid. The calculator then determines the maximum price you can pay for a home and still satisfy CIBC's upper limits on the three ratios. Go to the CIBC web site and enter the requested information.



2		One-day-old currency exchange rates may be obtained through the comprehensive financial web site Canoe. A table corresponding to Table 3.1 in your textbook is at the foreign money rates page of the Canoe web site. A table corresponding to Table 3.2 in your textbook is at the cross currency rates page of the Canoe web site.



3		Qualifying for a Mortgage: Go to the Web site of the Canadian Imperial Bank of Commerce at and select "Mortgage Calculator" from the "Tools" menu. Enter the information for the Sampson's (from the Point of Interest in Section 3.1 in your textbook). The monthly mortgage payment ($723) was based on a 25-year loan at 6.8%. From the CIBC's point of view, can the Sampson's afford the $150,000 home under their initial proposal? What is the maximum price they can afford if they use $7000 of their savings to pay off the car loan?



4		Currency Appreciation and Depreciation: By what percentage has the C$ appreciated or depreciated relative to the US$, the British £, and the Japanese ¥ since April 9, 1999 (when the rates in Table 3.2 in your textbook were obtained)? Use up-to-date currency exchange rates available at the Canoe web site.

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