You borrow $540,000to buy a house worth $600,000.

The interest rate is2.4% pa compoundingmonthlyand thefully amortisingloan term is30years. A loan repayment schedule is shown below, with some parts missing inbold.

Loan Repayment Schedule

Which of the below statements is NOT correct? All answer options are rounded to 2 decimal places as is the table above.

Select one:

a.

The interest component at month 1 is $1,080.00.

b.

The principal component at month 1 is $1,025.68.

c.

The interest component at month 360 is $4.20.

d.

The principal component at month 360 is $2,101.48.

e.

The amount owing just after the payment at month 360 is $4.20.

Transcribed Image Text:

Interest rate of 2.4% pa paid monthly, 30 year term Interest Time Total payment component Principal component Liability, just after payment Month $/month $/month $/month $ 0 540,000.00 1 2,105.68 (a) (b) ? 2 2,105.68 1,077.95 1,027.73 537,946.58 3 2,105.68 1,075.89 1,029.79 536,916.79 4 2,105.68 1,073.83 1,031.85 535,884.94 2,105.68 1,071.77 1,033.91 534,851.03 6 2,105.68 1,069.70 1,035.98 533,815.05 7 2,105.68 1,067.63 1,038.05 532,776.99 8 2,105.68 1,065.55 1,040.13 531,736.86 ... 356 2,105.68 20.93 2,084.75 8,380.79 357 2,105.68 16.76 2,088.92 6,291.87 358 2,105.68 12.58 2,093.10 4,198.77 359 2,105.68 8.40 2,097.29 2,101.48 360 2,105.68 (c) (d) (e) Interest rate of 2.4% pa paid monthly, 30 year term Interest Time Total payment component Principal component Liability, just after payment Month $/month $/month $/month $ 0 540,000.00 1 2,105.68 (a) (b) ? 2 2,105.68 1,077.95 1,027.73 537,946.58 3 2,105.68 1,075.89 1,029.79 536,916.79 4 2,105.68 1,073.83 1,031.85 535,884.94 2,105.68 1,071.77 1,033.91 534,851.03 6 2,105.68 1,069.70 1,035.98 533,815.05 7 2,105.68 1,067.63 1,038.05 532,776.99 8 2,105.68 1,065.55 1,040.13 531,736.86 ... 356 2,105.68 20.93 2,084.75 8,380.79 357 2,105.68 16.76 2,088.92 6,291.87 358 2,105.68 12.58 2,093.10 4,198.77 359 2,105.68 8.40 2,097.29 2,101.48 360 2,105.68 (c) (d) (e)

Answer rating: 100% (QA)

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