Now that they have accumulated a deposit of 40,000, Jack and Jill intend to use the deposit

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Now that they have accumulated a deposit of 40,000, Jack and Jill intend to use the deposit to take out a housing loan to purchase a home. The house costs $490,000. The loan is to be repaid in equal monthly instalments (end of month) over a term of 25 years.The interest rate quoted by the Bank is j₁₂ = 4.8%pa.

Calculate the effective annual rate on the loan.
How much is the monthly repayment?
How much interest is in the 90^th repayment?
How much would they still owe immediately before the 200^th repayment?

Posted Date: Jun 09, 2024 02:32 PM

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Now that they have accumulated a deposit of 40,000, Jack and Jill intend to use the deposit

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