ZuoTi.Pro
Question

Kellie purchases an apartment by borrowing $600,000 from the bank. The interest rate charged on the...

Kellie purchases an apartment by borrowing $600,000 from the bank. The interest rate charged on the loan is 6% per annum compounded monthly and Kellie agrees to make level month-end repayments to fully repay the loan over the next 30 years. (a) Calculate the level monthly repayment (rounded to the nearest cent).

Without EXCEL

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Cuals we want to the vaul ot monthly instament we reauire two things g 00: Monthly intejesti date - 6 - 0.5% @ No. of maths

600000 - Cx 0.834 005 C = 3597.12 . • 80, the amount of motly installment 1997,

I hope my efforts will be fruitful to you..?

0 0
Add a comment
Know the answer?
Add Answer to:
Kellie purchases an apartment by borrowing $600,000 from the bank. The interest rate charged on the...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Samuel and Sandra Sharp wish to borrow $600,000 to buya home. The loan from the Highway...

    Samuel and Sandra Sharp wish to borrow $600,000 to buya home. The loan from the Highway Bank requires equal monthly repayments over 20 years, and carries an interest rate of 5-1 % per annum, compounded monthly. The first repayment is due at the end of one month after the loan proceeds are received. You are required to calculate the following. i) The effective annual interest rate on the above loan (show as a percentage correct to 3 decimal places). li)...

  • Luke borrows $800 000 from a bank to set up a medical practice. He agrees to...

    Luke borrows $800 000 from a bank to set up a medical practice. He agrees to pay a fixed interest rate of 10.2 per cent per annum (calculated monthly) and to repay by equal monthly instalments over 10 years. Calculate the monthly repayment. By how much does Luke’s first repayment reduce the principal? If the loan is paid off as planned, by how much will the last repayment reduce the principal?

  • Problem 3 (Required, 25 marks) Recently, Mr. A has 2 outstanding loans: • Loan A -...

    Problem 3 (Required, 25 marks) Recently, Mr. A has 2 outstanding loans: • Loan A - He needs to repay $1720 at the end of every month and there are 36 repayments remaining. The loan charges interest at an annual nominal interest rate 12% compounded monthly Loan B - He needs to repay an amount X at the end of every month and there are 36 repayments remaining. The loan charges interest at an annual nominal interest rate 18% compounded...

  • $5,000 is deposited today into a bank account. The account earns 3.2% per annum compounded half...

    $5,000 is deposited today into a bank account. The account earns 3.2% per annum compounded half yearly for the first 7 years, then 8.2% per annum compounded quarterly thereafter. Assuming no further deposits or withdrawals are made, (d) Calculate the account balance 10 years from today. A loan of $100,000 is made today. The borrower will make equal repayments of $3800.75 per month with the first payment being exactly one month from today. The interest being charged on this loan...

  • Problem 2 (Required, 25 marks) Tina borrows an amount $500000 from the bank and agrees to repay the loan by 4n leve...

    Problem 2 (Required, 25 marks) Tina borrows an amount $500000 from the bank and agrees to repay the loan by 4n level monthly payments (with amount X) made at the end of every month. The first repayment will be made 1 month after today. You are given that • The loan charges interest at an annual nominal interest rate 5.9% convertible continuously. • The outstanding balance at 25th repayment date is OLBs = 397021.93. (a) Calculate the interest due and...

  • Today, Malorie takes out a 30-year loan of $200,000, with a fixed interest rate of 4.5%...

    Today, Malorie takes out a 30-year loan of $200,000, with a fixed interest rate of 4.5% per annum compounding monthly for the first 3 years. Afterwards, the loan will revert to the market interest rate. Malorie will make monthly repayments over the next 30 years, the first of which is exactly one month from today. The bank calculates her current monthly repayments assuming the fixed interest rate of 4.5% will stay the same over the coming 30 years. (d) After...

  • 15. 10 years ago, Alan started to repay a loan by making equal month-end repayments of $3,200 for 15 years. If the inter...

    15. 10 years ago, Alan started to repay a loan by making equal month-end repayments of $3,200 for 15 years. If the interest rate charged for the loan is 12% per annum compounded monthly, the loan outstanding immediately after the 120th payment is closest to A. $125,430 B. $138,420 C. $142,440 D. $143,860 16. Andrew's monthly instalment made in arrears to repay his loan fully is $4,500. If the effective for the loan is 0.3%, calculate the amount of the...

  • 1. What monthly payment is required to amortize a loan of $50,000 over 14 years if...

    1. What monthly payment is required to amortize a loan of $50,000 over 14 years if interest at the rate of 6%/year is charged on the unpaid balance and interest calculations are made at the end of each month? (Round your answer to the nearest cent.) $ 2. The Flemings secured a bank loan of $368,000 to help finance the purchase of a house. The bank charges interest at a rate of 3%/year on the unpaid balance, and interest computations...

  • A loan will be repaid by month-end repayments of 9,000 for 10 years. The interest rate...

    A loan will be repaid by month-end repayments of 9,000 for 10 years. The interest rate is 2.4% p.a. compounded monthly for the first 6 years and 8.2% p.a. compounded monthly thereafter. How much is the loan? Correct your answer to the nearest cent without any units. (Do not use "$" or "," in your answer. e.g. 12345.67)

  • 1. Narelle borrows $600,000 on a 25-year property loan at 4 percent per annum compounding monthly....

    1. Narelle borrows $600,000 on a 25-year property loan at 4 percent per annum compounding monthly. The loan provides for interest-only payments for 5 years and then reverts to principal and interest repayments sufficient to repay the loan within the original 25-year period. Assume rates do not change. a) Calculate the monthly repayment for the first 5 years. (CLUE: it is INTEREST ONLY) (2 marks) b) Calculate the new monthly repayment after 5 years assuming the interest rate does not...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT