Essay
You have borrowed $300 000 over 30 years in order to purchase your first home.The loan repayments are monthly at a nominal interest rate of 6.5% per annum compounded monthly.
a.What are the repayments?
b.If after two years the interest rate rises to 7.5% per annum what are the new monthly repayments?
c.If the interest rate does not change but from the beginning you decide to repay $2500 per month how long will it take to repay the loan? What amount would be the final repayment?
Correct Answer:
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a. To calculate the monthly repayments, ...View Answer
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