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Tina has a 20-year home loan of $750,000. She makes equal P&I month-end repayments of $5373.23. The interest rate is 6% p.a. compounded monthly. 5
Tina has a 20-year home loan of $750,000. She makes equal P&I month-end repayments of $5373.23. The interest rate is 6% p.a. compounded monthly. 5 years after the borrowing date, Tina loses her job and cannot make any repayments in the 6th year. To be able to repay the loan by the original date, Tina needs to increase the month-end repayments to $X from the 7th year. Which of the following equations can be used to find $X? (There may be more than one correct answer. You will lose marks by choosing a wrong answer. The minimum mark for the question is zero.) a. Select one or more: 5373.23 X (1 - 1.005-60) - 0.005 (1 - 1.005-180) 0.005 5373.23 b. (1 - 1.005-180) + (1.005)12 0.005 0.005 (1 - 1.005-168) 5373.23 X (1 - 1.005-180) 0.005 (1 - 1.005-168) 0.005 5373.23 X d. 750000(1.00560) (1.00560 - 1) = (1 - 1.005-168)(1.005)-12 0.005 0.005 5373.23 (1 - 1.005-60) (1 - 1.005-168) 0.005 0.005 f. None of the equations can be used to find X. e. 0
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