You borrow $ 540,000 to buy a house worth $600,000. The interest rate is 2.4 % pa
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Question:
You borrow $540,000to buy a house worth $600,000.
The interest rate is2.4% pa compoundingmonthlyand thefully amortisingloan term is30years. A loan repayment schedule is shown below, with some parts missing inbold.
Loan Repayment Schedule
Which of the below statements is NOT correct? All answer options are rounded to 2 decimal places as is the table above.
Select one:
a.
The interest component at month 1 is $1,080.00.
b.
The principal component at month 1 is $1,025.68.
c.
The interest component at month 360 is $4.20.
d.
The principal component at month 360 is $2,101.48.
e.
The amount owing just after the payment at month 360 is $4.20.
Related Book For
Fundamentals of Financial Management
ISBN: 978-1337395250
15th edition
Authors: Eugene F. Brigham, Joel F. Houston
Posted Date: