Question: Please solve the above question regarding repayments using the formulae given in DETAIL. Thank You! Ava used a secured loan of $400,000 to buy a

 Please solve the above question regarding repayments using the formulae given

Please solve the above question regarding repayments using the formulae given in DETAIL. Thank You!

Ava used a secured loan of $400,000 to buy a house for $450,000 five years ago. $50,000 has been paid by Ava's parents. The variable interest rate has been 5% in the past five years for the chosen bank. Answer the following questions a. What has been her monthly repayment if the loan's term is 25 years? b. She has made the monthly repayments for the last5years. How much has she paid in total? c. How much she should pay now to release the house? d. Calculate the interest paid so far. e. Calculate the portion of principal paid so far. P =F/(1+i)^n P = A(1-(1+i)^-n/1 NPV =-P + sigma^n_j-1 F_j/(1+i)^j

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!