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Determine the monthly payment required

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Every 2 years Mrs Taliga deposits $2000 into a fund that pays interest at j2 = X% p.a. The first deposit is one her 53rd birthday and the last deposit is on her 65th birthday. Beginning 3 months after her 65th birthday and counting every 3 months thereafter, she withdraws equal amounts of $A, which will exactly exhaust the fund on her 79th birthday. Determine $A.

Question:

You take out an $80,000 mortgage at j2 = X% p.a. with a 25 year amortisation period.

a. Determine the monthly payment required, rounded to 2 decimal places.

b. Determine the reduced final payment

c. Determine the total interest paid during the 4th year.

d. At the end of4 years, you pay down an additional $2500 (no penalty), How sooner will the mortgage be paid off?

Reference no: EM131050284

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