ANZ Bank lends $130,000 to a customer for 11 years at a rate of 15.0% with...
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ANZ Bank lends $130,000 to a customer for 11 years at a rate of 15.0% with monthly repayments. [All questions are equally weighted] (a) How much are the monthly repayments? (Give answer to 2 decimal places) (Give answer to 2 decimal places) (b) After 22 months of continuous repayments, the customer is unable to pay. What is the remaining value of the loan just after making the last payment before stopping (i.e. payment number 22)? (Give answer to 2 decimal places) (c) If the customer is unable to repay anything for one year and there is no extension on the loan maturity, how much are the monthly payments if the customer restarts the payments and intends to repay the loan on time? (Give answer to 2 decimal places) ANZ Bank lends $130,000 to a customer for 11 years at a rate of 15.0% with monthly repayments. [All questions are equally weighted] (a) How much are the monthly repayments? (Give answer to 2 decimal places) (Give answer to 2 decimal places) (b) After 22 months of continuous repayments, the customer is unable to pay. What is the remaining value of the loan just after making the last payment before stopping (i.e. payment number 22)? (Give answer to 2 decimal places) (c) If the customer is unable to repay anything for one year and there is no extension on the loan maturity, how much are the monthly payments if the customer restarts the payments and intends to repay the loan on time? (Give answer to 2 decimal places)
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a To calculate the monthly repayments we can use the formula for the present value of an annuity PV ... View the full answer
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