Question
Nine years ago, Ann entered into a $34,000 mortgage loan of 20 years and at a fixed rate of 12% p.a. (compounding monthly) with HSBC.
Nine years ago, Ann entered into a $34,000 mortgage loan of 20 years and at a fixed rate of
12% p.a. (compounding monthly) with HSBC.
a.
What is Ann's monthly payment?
b.
How much does she still owe the bank now?
c.
Ann decides to refinance her loan with ANZ who offers 10% p.a. (compounded monthly
for mortgage loan). There is no cost associated with this refinancing. What is her monthly
savings from this refinancing?
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Mathematical Applications for the Management Life and Social Sciences
Authors: Ronald J. Harshbarger, James J. Reynolds
11th edition
9781337032247, 9781305465183, 1305108043, 1337032247, 1305465180, 978-1305108042
