Question
A person purchased a home and signed a mortgage contract for $500, 000 to be paid with half-yearly payments over a 25-year period. The interest
A person purchased a home and signed a mortgage contract for $500, 000 to be paid with half-yearly payments over a 25-year period. The interest rate applicable is j2 = 8.5% p.a. applicable for the first five years, with the condition that the interest rate will be increased by 4% every 5 years for the remaining term of the loan
Based on the given information, required to use Excel software with cell referencing to:
1.) Calculate the half-yearly payment required for each five-year interval
2.) Calculate the loan outstanding (outstanding balance) at the beginning of each five-year interval
3.) Prepare a loan amortization table for the final 12 half-years of the loan term
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