Question: SECTION A Instruction: Complete ALL questions from this section. Mark Gore plans to get married and he wants to purchase a house for $1 800

SECTION A Instruction: Complete ALL questions from this section. Mark Gore plans to get married and he wants to purchase a house for $1 800 000. He entered into an agreement with National Housing Trust (NHT) to provide 50% financing which involved monthly payments over five (5) years at 12% per annum. The remainder of the funds would be borrowed from his commercial bank. Terms of the bank loan are 10% down payment with the balance to be repaid at 20% interest over three (3) years. A Calculate monthly payments to NHT if payments are made at the end of each month. 1 (5 marks) B. Compute annual end of year payments to the commercial bank. (5 marks) C. Considering B. above, prepare the amortisation schedule for this loan. (10 marks) (Total 20 marks)

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