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Wayne takes out a loan for $1200000 at an interest rate of 5.7%p.a. compounded monthly. The minimum monthly repayments over 30 years are currently $6964.81.
| Wayne takes out a loan for $1200000 at an interest rate of 5.7%p.a. compounded monthly. The minimum monthly repayments over 30 years are currently $6964.81. | |||||||
| a. Calculate the outstanding debt after 8 year(s) of minimum payments. | |||||||
| Calculator input: | |||||||
| =n= | Answer | ||||||
| =i= | Answer | ||||||
| =PV= | Answer | ||||||
| =PMT= | Answer | ||||||
| =FV= | Answer | ||||||
| /=P/Y= | Answer | ||||||
| /=C/Y= | Answer | ||||||
| Outstanding debt = | Answer | ||||||
| b. After 8 year(s), Wayne transfers the remainder of her loan to a bank charging a home loan interest of 5.45%p.a. compounded monthly. | |||||||
| (i) | Calculate the new monthly repayment | ||||||
| monthly payment = | $Answer | ||||||
| (ii) | How much interest will Wayne save? Calculate the balance remaining using your answer from b(i) and the final PMT. | ||||||
| Total interest saved = | $Answer | ||||||
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
