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Ethan takes out a 30-year home loan of $900,000 at an interest rate of 7.2% p.a. compounded monthly. The bank offers an interest only period
Ethan takes out a 30-year home loan of $900,000 at an interest rate of 7.2% p.a. compounded monthly. The bank offers an interest only period of 10 years. After that, Ethan will need to repay $7086.14 at the end of each month. Which of the following gives the loan outstanding 25 years after the borrowing date (only one correct answer)? (2 marks) 7086.14/0.006*(1-1.006^-60) None of the options gives the correct answer. 7086.14/0.006*(1.006-300-1) 7086.14/0.006*(1-1.006^-300) 900000*(1.006)^300-7086.14/0.006(1.006^300-1) If the prospective method is used to find the loan outstanding balance at the end of year 25. 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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