You wish to buy a house now that costs $400,000. You currently have $110,000 on deposit in a savings account which provides 2% p.a. interest compounded monthly. You are planning to pay for the house in the following way:

-You will pay 20% of the house price from your current savings.

-You will take a couple of bank loans to cover the rest of the house's price.

These two loans are:

-a 3-year fixed-interest personal loan of $20,000

-a 25-year fixed-interest house loan for the rest of the house price (i.e. after paying from the personal deposit and the $20,000 taken as a personal loan)

You also have the following information concerning loans from your bank:

Loan Type Interest Rate Interest Compounded 25-year fixed interest house loan 3.5% p.a. Monthly 3-year fixed-interest personal loan 10% p.a. Semi-annually