I am having difficulty with the following question, and I am not sure if it is because I am misinterpreting it or miscalculating it.

Richard and Pauline have decided to consolidate their debts into their home loan with two splits, oneforthe existing home loan and a second split for all other debts.

In the template below provide a new liabilities summary once Richard and Pauline have completed the debt consolidation including their new monthly repayments.

Note: They have chosen to refinance with 'One State Bank' who are offering a 4.5% interest rate on a variable, principaland interest loan over 30 years.

Student response to Task 9: Question 3

Student response to Task 9: Question 3 Lender Interest rate Monthly repay- Debt ment One State Bank - Principal & Interest 4.5% $1,012.5 $270,000 on home loan One State Bank - All Other Debt 4.5% $112.5 $30,000 Total 4.5% $1,125.0 $300,000 4. What savings will Richard and Pauline obtain in monthly repayments? (Remember to show the calculation of how you determined the savings). (100 words) Student response to Task 9: Question 4 Richard and Pauline are currently paying $3,117 per month on their debt, so by consolidat- ing debt into one loan with two splits and a total repayment of $1,125, they will be reduc- ing their monthly payments by $1,992 or around 36%.Liabilities Lender Situation Interest Monthly repay- Debt rate ment First and Last Currently up to date though had three-month 5.7% $1,567.00 $270,000 Bank (home loan extension to contract after hardship application - joint) 12 months ago Big Bank Visa Only able to repay 3% per month for last 18.95% (pays 3% per $7,800 card (Richard) six months month) (limit $240.00 58,000) Little Bank Visa Only able to repay 3% per month for last 21.5% (pays 3% per $3,800 card (Pauline) six months month) (limit Is over limit by $800 $90.00 $3,000) My Domain Did not keep to interest free contract and paying 28.50% 5370.00 $3,400 Furniture Store debt by instalments Super Car Loan Four-year contract expiring next month and n/a $850.00 $15,000 lease need $15,000 to pay residual (residual) Total $3,117.00 $300,000