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Helen takes out a 30-year home loan of $900,000. She makes equal month-end repayments of $X at the interest of 6% p.a. compounded monthly. 10
Helen takes out a 30-year home loan of $900,000. She makes equal month-end repayments of $X at the interest of 6% p.a. compounded monthly. 10 years after Helen takes out the home loan, the loan outstanding balance becomes $753,171.52. The bank increases the interest rate to 7.2% p.a. compounded monthly. Helen has to increase her monthly repayment to $Y in order to repay the loan in the remaining 20 years. Which of the following equations can be used to find the increased monthly repayment $Y?(There may be more than one correct answer. You will lose marks by choosing a wrong answer. The minimum mark for the question is zero.) (2 marks) Select one or more: Y a. 753171.52 = * (1.006240 1) 0.006 Y b. 753171.52 *(1.006)240 * (1.006240 1) 0.006 C. 753171.52 = 900000 * (1.006)120 Y * (1.006120 1) 0.006 d. 900000 Y * (1 1.006-360) 0.006 e. None of the equations give the correct answer. Y f. 753171.52 = * (1 1.006-240) 0.006
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