Strata committee SP666 has resolved to accumulate a sum of $1000 000 in ten years' time...
Benjamin and Stéphanie's mother/mother-in-law, Suzy, issued a $1 000 000 twenty-five year interest-only loan to the couple. Under the terms of the loan, they make annual payments of interest every year (at 3% p.a.); the final payment will consist of the regular interest amount together with the return of principal. Unbeknownst to the couple, Suzy has invested each interest payment at 3.5% p.a. Her intention is to give the accumulated amount to the couple when the loan matures. Allowing for...
Benjamin and St´ephanie’s mother/mother-in-law, Suzy, issued a $1 000 000 twenty-five year interest-only loan to the couple. Under the terms of the loan, they make annual payments of interest every year (at 3% p.a.); the final payment will consist of the regular interest amount together with the return of principal. Unbeknownst to the couple, Suzy has invested each interest payment at 3.5% p.a. Her intention is to give the accumulated amount to the couple when the loan matures. Allowing for...