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Q) To repay a $400,000 loan you are required to make sixteen equal-sized repayments every six months. If the loan's interest rate is 5% p.a.

Q) To repay a $400,000 loan you are required to make sixteen equal-sized repayments every six months. If the loan's interest rate is 5% p.a. compounded half-yearly, what is the loan outstanding after the first repayment?

a. $379,360.40

b. $369,360.40

c. $30,639.60

d. $20,639.60

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