Question 1

(10 marks)

Kellie purchases an apartment by borrowing $600,000 from the bank. The interest rate charged on the loan is 6% per annum compounded monthly and Kellie agrees to make level month -end repayments to fully repay the loan over the next 30 years.

(c)

Calculate the total amount of interest paid over the first 10 years (i.e. the interest in the first 120 level monthly repayments), rounded to the nearest cent.