Your bank offers you a $500,000 25-year housing loan at a rate of 6% pa compounding...

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Your bank offers you a $500,000 25-year housing loan at a rate of 6% pa compounding monthly. After 5 years of making your regular monthly payments, you receive a pay rise and decide to increase your monthly loan repayment amount by an additional $101 in order to accelerate repayment of the loan. How much earlier will the loan be paid off? Type your answer into the box. You should show the number of months to 1 decimal place. (For example if your answer is that the loan will be paid off 7.3 months earlier, then type 7.3 into the box) A1 1 A B Question 2: Pay off Loan faster C D E F G H I J K 2 3456 Housing loan amount 500,000 Annual interest rate compounding monthly Loan term in years 6.0% 25 7 00 8 After 5 years of payments, you increase your monthly loan repayment by: Working space: 9 How much earlier the loan will be paid off: months 10 11 12 13 Remember to type your answer into the box on Canvas for Question 2 14 15 16 E.GABBANA 17 18 19 20 222 21 22 23 24 25 26 Ready Instructions Question 2 Question 3 Question 4 + Accessibility: Investigate esc tab 16,728 33 NOV 14 B I U ! 1 2 Q A #3 + I auto.proctoru.com is sharing your screen. Stop sharing Hide % 4 50 tv MacBook Pro A 6 7 W E R T Y S LL F I "/A + 191% Lo L 00 K R Your bank offers you a $500,000 25-year housing loan at a rate of 6% pa compounding monthly. After 5 years of making your regular monthly payments, you receive a pay rise and decide to increase your monthly loan repayment amount by an additional $101 in order to accelerate repayment of the loan. How much earlier will the loan be paid off? Type your answer into the box. You should show the number of months to 1 decimal place. (For example if your answer is that the loan will be paid off 7.3 months earlier, then type 7.3 into the box) A1 1 A B Question 2: Pay off Loan faster C D E F G H I J K 2 3456 Housing loan amount 500,000 Annual interest rate compounding monthly Loan term in years 6.0% 25 7 00 8 After 5 years of payments, you increase your monthly loan repayment by: Working space: 9 How much earlier the loan will be paid off: months 10 11 12 13 Remember to type your answer into the box on Canvas for Question 2 14 15 16 E.GABBANA 17 18 19 20 222 21 22 23 24 25 26 Ready Instructions Question 2 Question 3 Question 4 + Accessibility: Investigate esc tab 16,728 33 NOV 14 B I U ! 1 2 Q A #3 + I auto.proctoru.com is sharing your screen. Stop sharing Hide % 4 50 tv MacBook Pro A 6 7 W E R T Y S LL F I "/A + 191% Lo L 00 K R

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To calculate how much earlier the loan will be paid off with the increased monthly repayment amount we can use a loan amortization schedule First lets calculate the original monthly payment for the 50... View the full answer