Madeleine borrows $860000 to purchase a home. She is originally charged 6.23% p.a. fixed interest compounded monthly for 27 years.

a) Calculate Madeleine's regular monthly repayments with the original interest rate. $$ = b) Calculate her outstanding debt after 5years: $$ = c) After 5 years, the interest rate changes to 5.00% p.a. fixed interest compounded monthly.

1. Calculate Madeleine's new monthly repayment. $$ =
2. Calculate the total interest charged over the 27 years of the loan, assuming that the rate stays at 5.00% p.a. for the next 22 years. $$ =

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