Now that they have accumulated a deposit of 60,000, Jack and Jill intend to use the deposit to take out a housing loan to purchase a home. The house costs $460,000. The loan is to be repaid in equal monthly installments (end of the month) over a term of 30 years. The interest rate quoted by the Bank is j12 = 6%pa.

a. Calculate the effective annual rate on the loan.

b. How much is the monthly repayment?

c. How much interest is in the 100th repayment?

d. How much would they still owe immediately after the 240th repayment?

Answer rating: 100% (QA)

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