You've just purchased an apartment for $800,000. After putting down a 10% deposit, you nanced the remaining balance with a 20-year xed-rate home loan obtained from your bank. Repayments on the loan occur monthly, and the loan rate is 4.8% p.a., with monthly compounding. Use this data to answer Questions 5-6 below.

5. What are the loan repayments?

(a) Approximately $3,000 per month.

(b) Approximately $4,672 per month.

(c) Approximately $4,733 per month.

(d) Approximately $5,192 per month.

6. Suppose you sell the apartment after ve years. How much will you have to pay your bank to settle the loan?

(a) Approximately $540,000.

(b) Approximately $597,606.

(c) Approximately $598,720.

(d) Approximately $665,244