The parts a), b), c) and d) are based on the information provided below: A 30-year...

  

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The parts a), b), c) and d) are based on the information provided below: A 30-year home loan is to be repaid by equal month-end repayments of $6,500. The first repayment will be made at the end of the first month. The interest rate is 4.2% p.a. compounded monthly. a) Calculate the loan outstanding balance at the end of year 12. (Round your answer to the nearest cent) (3 marks) b) From the beginning of year 13, the bank increases the interest rate to 5.4% p.a. compounded monthly. To pay off the loan by the original date, calculate the amount of the increased monthly repayments. (Round your answer to the nearest cent) (3 marks) c) Calculate the principal paid in the 13th year. (Round your answer to the nearest cent) (3 marks) d) Calculate the interest paid in the 13th year. (Round your answer to the nearest cent) (2 marks) The parts a), b), c) and d) are based on the information provided below: A 30-year home loan is to be repaid by equal month-end repayments of $6,500. The first repayment will be made at the end of the first month. The interest rate is 4.2% p.a. compounded monthly. a) Calculate the loan outstanding balance at the end of year 12. (Round your answer to the nearest cent) (3 marks) b) From the beginning of year 13, the bank increases the interest rate to 5.4% p.a. compounded monthly. To pay off the loan by the original date, calculate the amount of the increased monthly repayments. (Round your answer to the nearest cent) (3 marks) c) Calculate the principal paid in the 13th year. (Round your answer to the nearest cent) (3 marks) d) Calculate the interest paid in the 13th year. (Round your answer to the nearest cent) (2 marks)

Answer rating: 100% (QA)

a Interest rate per month 4212 00035 Outstanding Loan Balance at the end of year 12 Present value of ... View the full answer