A family purchases a holiday cottage and borrows $900,000 from their bank at 5% per annum payable monthly. The level monthly instalments of principal and interest are required for 20 years.

A. By setting up a loan repayment schedule, find the amount of loan repaid in first Three (3) months. (3 marks)

USE THE FORMAT BELOW

Month	Loan outstanding at start of month	Interest due	Principal repaid	Loan outstanding at the end of the month
1
2
3

[Show workings here]

Monthly instalments: [

];

[

],

[

]