The Harveys are purchasing a home for $12,500,000 and have made the required deposit of 12%...

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The Harveys are purchasing a home for $12,500,000 and have made the required deposit of 12% and have also paid the closing cost of S1,000,000. They have been pre-approved by County Building Society to qualify for a 25-year mortgage loan for the balance to close the purchase. This will attract an interest rate of 5.50% per annum with monthly compounding. (a) Use a full amortisation table to show what the loan balance would be at the end of the first three months on the Harveys' new mortgage loan. (b) If the Harveys are planning to make only the required monthly payments on the loan and then use a lumpsum deposit to pay off their mortgage at the end fifteen years, what would be the total interest payable over the period? The Harveys are purchasing a home for $12,500,000 and have made the required deposit of 12% and have also paid the closing cost of S1,000,000. They have been pre-approved by County Building Society to qualify for a 25-year mortgage loan for the balance to close the purchase. This will attract an interest rate of 5.50% per annum with monthly compounding. (a) Use a full amortisation table to show what the loan balance would be at the end of the first three months on the Harveys' new mortgage loan. (b) If the Harveys are planning to make only the required monthly payments on the loan and then use a lumpsum deposit to pay off their mortgage at the end fifteen years, what would be the total interest payable over the period?