Corbin intends to buy an apartment in Melbourne for $600,000. Corbin has the required 20% deposit and needs to borrow the remaining 80%. The mortgage is over 20 years at the current market rate of 6.50% per annum, compounded monthly. Ignoring any other cost, fees, charges or taxes, calculate:  (best to use at least 4 decimal places).

i.          The monthly repayment (round to the nearest cent).                              

ii.         The total interest over the life of the loan (round to the nearest cent).   

iii.        At the end of the twelfth year, just after paying the instalment due at that time, Corbin receives an inheritance and is considering paying out the loan. What is the balance of the loan after 12  years and how much interest will Corbin save if he decides to payout the loan?

Answer rating: 100% (QA)

SOLUTION i The monthly repayment is 333837 ii The ... View the full answer