Question 2 (10 marks) The parts a), b), c) and d) are based on the information provided below: Jackson borrows $500,000 on a 25-year home loan at 6% p.a. compounding monthly. The loan provides for interest-only payments for the first 10 years and then reverts to principal and interest repayments sufficient to repay the loan within the original 25-year period. Each repayment is made at the end of each month. Assume the interest rate does not change. a) Calculate the monthly repayment for the first 10 years. Round your answer to the nearest cent. (2 marks)

b) Calculate the new monthly repayment after the first 10 years. Round your answer to the nearest cent. (2 marks)