Question
Ava takes out a 20-year home loan of $300,000 from her bank. The interest rate is 3.6% p.a. compounded monthly. Ava needs to repay $1,755.33
Ava takes out a 20-year home loan of $300,000 from her bank. The interest rate is 3.6% p.a. compounded monthly. Ava needs to repay $1,755.33 at the end of each month. Which of the following gives the principal paid in the 8th year (only one correct answer)? (2 marks)
A. None of the options gives the correct answer.
B. 1755.33/0.003*(1.003^156-1)-1755.33/0.003*(1.003^144-1)
C. 1755.33/0.003*(1.003^96-1)-1755.33/0.003*(1.003^84-1)
D. 1755.33/0.003*(1-1.003^-96)-1755.33/0.003*(1-1.003^-84)
E. 1755.33/0.003*(1-1.003^-156)-1755.33/0.003*(1-1.003^-144)
If the prospective method is used to find the principal paid in the 8th year. The answer should be ( ) (1 mark. Round your answer to 2 decimal places. Do not put unit. Do not use comma separators. E.g. 1234.56)
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