You would like to borrow $800,000 to purchase a unit in Sydney.

You are deliberating how to repay the mortgage through annual repayments, monthly repayments or fortnightly repayments. To make an informed decision, you need to understand what the repayment amount is.

Required

Using the PMT function, calculate the fortnightly, monthly and annual repayments for the mortgage. The mortgage is for $800,000 to be repaid over 30 years at the interest rate of 4.25%.

Please use the following format:

After reviewing your finances, you realise you can only afford to pay $3,000 per month.

Using Microsoft Excel Goal Seek feature, calculate your borrowing capacity based on this repayment figure. The loan term will remain at 30 years and the interest rate at 4.25%.