Question
Luke borrows $800,000 from ANZ to set up a medical practice. He agrees to pay a fixed interest rate of 12% per annum compounding monthly
Luke borrows $800,000 from ANZ to set up a medical practice. He agrees to pay a fixed interest rate of 12% per annum compounding monthly and to repay by equal monthly instalments over 20 years. Calculate the monthly repayment and the remaining loan after making 24 monthly repayments.
| a. | None of the other answers are true. |
| b. | The monthly repayment is $107,103.02 and the outstanding is $776,461.59 after making 24 monthly repayments. |
| c. | The monthly repayment is $8,808.69 and the outstanding is $778,186.85 after making 24 monthly repayments. |
| d. | The monthly repayment is $8,808.69 and the outstanding is $776,461.59 after making 24 monthly repayments. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Calculus
Authors: Dale Varberg, Edwin J. Purcell, Steven E. Rigdon
9th edition
131429248, 978-0131429246
