Eliza has been paying off her home loan for 14 years. She has reduced the debt to $281582.63. She has made regular payments of $2,940.76 over this time. Her original home loan was for 25 years at 6.15% p.a. interest calculated monthly a. Calculate how much Eliza orginally borrowed approximately to the nearest thousand of dollars. i.e. write your answer in the form $___000. Therefore, PV 450000.29 b i. Calculate how much Eliza has paid off after 14 years. $ 168417.66 ii. Calculate the total repayments Eliza has made over 14 years. $ 494047.68 C. i. Suppose that after 14 years, Eliza adds an extra $110 a month to the repayments. How many months approximately, will this reduce the term of the loan? Calculator input: n = i= PV = PMT = FV = PY = C/Y = Number of months remaining with new repayments amount = n= months (Round your answer to the best integer value) months. Therefore, the term of the loan will reduce by (Round your answer to the best integer value) ii. Alternatively, suppose that, after the 14 years, Eliza transfers the remainder of the loan to a bank that has a lower interest rate. If Eliza is able to repay the remainder of the loan in 9 years, What interest rate has the bank been charging? Assume her monthly repayments remain at $2,940.76. Calculator input: n = i = PV = PMT = FV = PY = C/Y = Therefore, the interest rate with the new bank is % p.a. (2 decimal places) Eliza has been paying off her home loan for 14 years. She has reduced the debt to $281582.63. She has made regular payments of $2,940.76 over this time. Her original home loan was for 25 years at 6.15% p.a. interest calculated monthly a. Calculate how much Eliza orginally borrowed approximately to the nearest thousand of dollars. i.e. write your answer in the form $___000. Therefore, PV 450000.29 b i. Calculate how much Eliza has paid off after 14 years. $ 168417.66 ii. Calculate the total repayments Eliza has made over 14 years. $ 494047.68 C. i. Suppose that after 14 years, Eliza adds an extra $110 a month to the repayments. How many months approximately, will this reduce the term of the loan? Calculator input: n = i= PV = PMT = FV = PY = C/Y = Number of months remaining with new repayments amount = n= months (Round your answer to the best integer value) months. Therefore, the term of the loan will reduce by (Round your answer to the best integer value) ii. Alternatively, suppose that, after the 14 years, Eliza transfers the remainder of the loan to a bank that has a lower interest rate. If Eliza is able to repay the remainder of the loan in 9 years, What interest rate has the bank been charging? Assume her monthly repayments remain at $2,940.76. Calculator input: n = i = PV = PMT = FV = PY = C/Y = Therefore, the interest rate with the new bank is % p.a. (2 decimal places)
