Now that they have accumulated a deposit of $120,000, Joe and Jenny wish to use the deposit and take out a housing loan to purchase a home. The home costs $720,000. The loan is to be repaid in equal monthly instalments over a term of 30 years.Jenny recalls that the interest rate quoted by the bank is an annual nominal rate of 4.8%pa compounded monthly.After 10 years (120th repayment just made), the bank announces the interest rate will change to an annual nominal rate of 4.2%pa compounded monthly.

(i) How much is the original monthly repayment?

(ii) How much is the monthly repayment after the interest rate fall, assuming the term is unchanged?

(iii) Provide Joe and Jenny with a repayment schedule after the interest rate fall using excel.

(Answers should be accurate to the nearest dollar)