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    "question_id": "1482724",
    "url": "\/study-help\/questions\/question-1-today-malorie-takes-out-a-20year-loan-of-1482724",
    "question_creation_date_js": "2024-05-22T01:00:09-04:00",
    "question_creation_date": "May 22, 2024 01:00 AM",
    "meta_title": "[Solved] QUESTION 1 Today, Malorie takes out a 20- | SolutionInn",
    "meta_description": "Answer of - QUESTION 1 Today, Malorie takes out a 20-year loan of $200,000, with a fixed interest rate of 5.3% per annum compoundi | SolutionInn",
    "meta_keywords": "question,1,today,malorie,20-year,loan,$200,000,fixed,interest,rate,5.3%,per",
    "question_title_h1": "QUESTION 1 Today, Malorie takes out a 20-year loan of $200,000, with a fixed interest rate of 5.3% per annum compounding monthly for the first",
    "question_title": "QUESTION 1 Today, Malorie takes out a 20-year loan of $200,000, with",
    "question_title_for_js_snippet": "QUESTION 1 Today, Malorie takes out a 20 year loan of $200,000, with a fixed interest rate of 5 3  per annum compounding monthly for the first 3 years  Afterwards, the loan will revert to the market interest rate  Malorie will make monthly repayments over the next 20 years, the first of which is exactly one month from today  The bank calculates her current monthly repayments assuming the fixed interest rate of 5 3  will stay the same over the coming 20 years  (a) Calculate the size of the repayment that the bank requires Malorie to make at the end of the first month  (1 mark) Today, Malorie takes out a 20 year loan of $200,000, with a fixed interest rate of 5 3  per annum compounding monthly for the first 3 years  Afterwards, the loan will revert to the market interest rate  Malorie will make monthly repayments over the next 20 years, the first of which is exactly one month from today  The bank calculates her current monthly repayments assuming the fixed interest rate of 5 3  will stay the same over the coming 20 years  (b) Calculate the loan outstanding at the end of the fixed interest period (i e  after 3 years)  (1 mark) Today, Malorie takes out a 20 year loan of $200,000, with a fixed interest rate of 5 3  per annum compounding monthly for the first 3 years  Afterwards, the loan will revert to the market interest rate  Malorie will make monthly repayments over the next 20 years, the first of which is exactly one month from today  The bank calculates her current monthly repayments assuming the fixed interest rate of 5 3  will stay the same over the coming 20 years  (c) Calculate the total interest Malorie pays over this fixed interest period  (1 5 marks) Today, Malorie takes out a 20 year loan of $200,000, with a fixed interest rate of 5 3  per annum compounding monthly for the first 3 years  Afterwards, the loan will revert to the market interest rate  Malorie will make monthly repayments over the next 20 years, the first of which is exactly one month from today  The bank calculates her current monthly repayments assuming the fixed interest rate of 5 3  will stay the same over the coming 20 years  (d) After the fixed interest period, the market interest rate becomes 6 3  per annum effective  Assuming the interest rate stays at this new level for the remainder of the term of the loan, calculate the new monthly installment  (1 5 marks)",
    "question_description": "<p><strong>QUESTION 1<\/strong><\/p> <p>Today, Malorie takes out a 20-year loan of $200,000, with a fixed interest rate of 5.3% per annum compounding monthly for the first 3 years. Afterwards, the loan will revert to the market interest rate.<\/p> <p>Malorie will make monthly repayments over the next 20 years, the first of which is exactly one month from today. The bank calculates her current monthly repayments assuming the fixed interest rate of 5.3% will stay the same over the coming 20 years.<\/p> <p><\/p> <p>(a) Calculate the size of the repayment that the bank requires Malorie to make at the end of the first month.<\/p> <p>(1 mark)<\/p> <p> <\/p> <p>Today, Malorie takes out a 20-year loan of $200,000, with a fixed interest rate of 5.3% per annum compounding monthly for the first 3 years. Afterwards, the loan will revert to the market interest rate.<\/p> <p>Malorie will make monthly repayments over the next 20 years, the first of which is exactly one month from today. The bank calculates her current monthly repayments assuming the fixed interest rate of 5.3% will stay the same over the coming 20 years.<\/p> <p><\/p> <p>(b) Calculate the loan outstanding at the end of the fixed interest period (i.e. after 3 years).<\/p> <p>(1 mark)<\/p> <p> <\/p> <p>Today, Malorie takes out a 20-year loan of $200,000, with a fixed interest rate of 5.3% per annum compounding monthly for the first 3 years. Afterwards, the loan will revert to the market interest rate.<\/p> <p>Malorie will make monthly repayments over the next 20 years, the first of which is exactly one month from today. The bank calculates her current monthly repayments assuming the fixed interest rate of 5.3% will stay the same over the coming 20 years.<\/p> <p><\/p> <p>(c) Calculate the total interest Malorie pays over this fixed interest period.<\/p> <p>(1.5 marks)<\/p> <p> <\/p> <p>Today, Malorie takes out a 20-year loan of $200,000, with a fixed interest rate of 5.3% per annum compounding monthly for the first 3 years. Afterwards, the loan will revert to the market interest rate.<\/p> <p>Malorie will make monthly repayments over the next 20 years, the first of which is exactly one month from today. The bank calculates her current monthly repayments assuming the fixed interest rate of 5.3% will stay the same over the coming 20 years.<\/p> <p><\/p> <p>(d) After the fixed interest period, the market interest rate becomes 6.3% per annum effective. Assuming the interest rate stays at this new level for the remainder of the term of the loan, calculate the new monthly installment.<\/p> <p>(1.5 marks)<\/p>",
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    "question_posted": "2024-05-22 01:00:09",
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