The table shows monthly home loan repayments with interest rate changes from February to October 2009. (i) (ii) (iii) A Monthly home loan repayments B D E 2 Dates Feb 2009 Apr 2009 Jun 2009 Oct 2009 3 Increase/Decrease -1.0% -0.1% 0.05% 0.25% 4 Rate 5.85% 5.75% 5.80% 6.05% 5 $1.000 $6.35 $6.29 $6.32 $6.47 6 $50 000 $318 $315 $316 $324 7 $100 000 $635 $629 $632 $647 8 $150 000 $953 $944 $948 $971 9 $200 000 $1 270 $1 258 $1 264 $1295 10 $250 000 $1 588 $1 573 $1 580 $1 618 11 $300 000 $1 905 $1 887 $1896 $1.942 12 $350 000 $2 223 $2 202 $2 212 $2 266 13 $400 000 $2 541 $2516 $2 529 $2589 14 KSheet Sheet 2/ What is the change in monthly repayments on a $250 000 loan from February 2009 to April 2009? (1 mark) Xiang wants to borrow $307 000 to buy a house. Xiang's bank approves loans for customers if their loan repayments are no more than 30% of their monthly gross salary. Xiang's monthly gross salary is $6 500. If she had applied for the loan in October 2009, would her bank have approved her loan? Justify your answer with suitable calculations. (3 marks) Jack took out a loan at the same time and for the same amount as Xiang. Graphs of their loan balances are shown. $307 000 --- Xiang's loan - Jack's loan Loan balance ($) 12 18 Term of loan (years) 25 30 Identify TWO differences between the graphs and provide a possible explanation for each difference, making reference to interest rates and/or loan repayments. (2 marks)