Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Xander takes out a loan for $260000 at an interest rate of 4.8%p.a. compounded monthly. The minimum monthly repayments over 25 years are currently $1489.8.
| Xander takes out a loan for $260000 at an interest rate of 4.8%p.a. compounded monthly. The minimum monthly repayments over 25 years are currently $1489.8. | |||||||
| a. Calculate the outstanding debt after 7 year(s) of minimum payments. | |||||||
| Calculator input: | |||||||
| n=n= | Answer | ||||||
| i=i= | Answer | ||||||
| PV=PV= | Answer | ||||||
| PMT=PMT= | Answer | ||||||
| FV=FV= | Answer | ||||||
| P/Y=P/Y= | Answer | ||||||
| C/Y=C/Y= | Answer | ||||||
| Outstanding debt = | Answer | ||||||
| b. After 7 year(s), Xander transfers the remainder of her loan to a bank charging a home loan interest of 4.4%p.a. compounded monthly. | |||||||
| (i) | Calculate the new monthly repayment | ||||||
| monthly payment = | $Answer | ||||||
| (ii) | How much interest will Xander save? Calculate the balance remaining using your answer from b(i) and the final PMT. | ||||||
| Total interest saved = | $Answer | ||||||
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started