Question
1) You have approached a commercial bank to obtain a fully amortised mortgage loan of $950,000 to purchase your dream home. You are offered a
1) You have approached a commercial bank to obtain a fully amortised mortgage loan of $950,000 to purchase your dream home. You are offered a 30-year loan with a fixed interest rate of 5.2% p.a. compounded monthly. Payment of the loan is required at the end of each month.
- What is a mortgage loan? (2 marks)
- Calculate the amount you will be required to pay monthly. (4 marks)
- If payment of the loan was required at the beginning of each month, what would the monthly instalment be? (2 marks)
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The Changing Geography Of Banking And Finance
Authors: Pietro Alessandrini ,Michele Fratianni ,Alberto Zazzaro
1st Edition
1441947205, 978-1441947208
