Calculate the new monthly repayment if scott pays off

Assignment Help Financial Accounting
Reference no: EM132519545

Point 1: Scott Larimore bought a house three years ago that cost $750,000. Scott put up 20% deposit and borrowed  the rest from Suncorp Bank at a rate of 7.2% per annum, compounded monthly, for 10 years. The loan will be repaid by equal monthly repayments, consisting of principal and interest.

Point 2: Three months ago, Suncorp Bank notified Scott that after the last monthly repayment for the third year, the  interest rate on his loan will increase to 9.6% per annum, compounded monthly, in line with market rates.  Also, from the fourth year of his loan Scott can either increase the monthly repayment (so as to pay off the  loan by the originally agreed date), or he can keep paying the same original monthly repayment and extend  the term of the loan.

Question a. Calculate the new monthly repayment if Scott pays off the loan by the originally agreed date.

Question b. If Scott keeps on paying the original repayment, calculate the extra period added to the term of the loan.

Reference no: EM132519545

Questions Cloud

Price elasticity of demand and a linear demand function : Consider the definition of price elasticity of demand and a linear demand function: Q = 10-2P. What is the price elasticity of demand when P = 3?
Anti-federalist : Introductory paragraph explaining my position on ratifying the constitution as a anti federalist.
What is questionable about the ethics of shifting liability : What is questionable about the ethics of shifting liability to corporation and others not directly involved in the conduct in question?
Write an essay comparing and explaining the composition : Write an essay comparing and explaining the composition of an English sonnet, and the composition of a prose essay and Essay should be at five-six paragraphs
Calculate the new monthly repayment if scott pays off : Calculate the new monthly repayment if Scott pays off the loan by the originally agreed date. Scott Larimore bought a house three years ago
What crime was the offender convicted of : What crime was the offender convicted of and what was their sentence? What factors did the parole board look at before making a decision about whether to grant.
What would be benefits and pitfalls of servant leadership : Based on your original definition of leadership, the assigned readings, and any other related readings, what are some of the major traits of a leader?
Prepare relevant entries with respect to the truck : Spiniflex Pigeon Company owns 90%, Record the journal entries on Spiniflex Pigeon's books for 2005. Prepare relevant entries with respect to the truck
How is the given important to public safety organizations : Think of two organization or units you have observed: one that followed the Flywheel principle, and the other that fell into the Doom Loop.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd