Question 4: [Total 10 marks; 5 marks for each part] You have had your offer of $1.2 million on a house accepted and have arranged with the bank for a 30 year mortgage equal to 90% of the sale price. The agreement calls for monthly repayments and the bank will charge a nominal annual interest rate of 6% (assumed unchanged throughout the entire loan period). (a) If the first payment is due one month after the loan is received, calculate the amount for the regular instalments. (b) After the 60th payment, you have decided to pay out the mortgage. What is the payout amount? u vodafone AU 4G 4:15 pm 69% G4 New Microsoft Office Word Doc... back to top Note: For numerical problems, detailed worked solutions must be shown. This involves providing a brief description of the problems, formulae used, progressive and final solutions to the problems. The use of excel built-in functions is not permitted. Question 1: [Total 10 marks; 5 marks for each part] (a) Mary is planning to retire in 10 years, and buy her dream home in Nelson Bay, NSW. The house is currently priced one million in the market and is expected to grow in value each year at a 5% rate. Assuming that she can earn 10% annually on her investments, how much must she invest at the end of each of the next 10 years to be able to buy her dream home when she retires? (b) Amy borrowed $10,000 today. She is required to repay equal amounts at the end of each of 7 years, with the first payment starting in four years' time. The relevant interest rate is 8% per annum. How much will be the amount of each payment