Question: You have a client interested in taking out a mortgage. The loan they require is $750,000 over 20 years. You have advised them of

You have a client interested in taking out a mortgage. The loan

You have a client interested in taking out a mortgage. The loan they require is $750,000 over 20 years. You have advised them of a product which offers an interest rate of 4% per annum with repayments monthly. i. ii. iii. What would be the monthly repayments on this loan? What amount would you need to pay in order to settle the loan after paying the 120th instalment? If the interest rate rise to 5% at the end of the 120th instalment, what will be the new repayment for the remainder of the period of the loan?

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