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Today is January 1st, 2017. Pauline just bought a three-bedroom house in the city of Newyork for $1,000,000. She put down 20% of the house
Today is January 1st, 2017. Pauline just bought a three-bedroom house in the city of Newyork for $1,000,000. She put down 20% of the house value as deposit, and borrowed the remaining amount from Commonwealth Bank of Australia (CBA). The bank charges a fixed rate of 5.6% per annum on the loan, payable with fixed monthly instalments. The maturity of the loan is 25 years.
- What is the amount of monthly payment for this loan? (3 marks)
- What are the principal amount and the interest amount in the last instalment? (1+1=2 marks)
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