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How much is the original monthly repayment

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Question - Now that she has accumulated a deposit of $200,000, Andrea wishes to use this deposit and take out a housing loan to purchase a home. The home costs $800,000. The loan is to be repaid in equal monthly instalments over a term of 30 years. Andrea recalls that the interest rate quoted by the bank is an  After 10 years (120th repayment has just been made), the bank announces the interest rate will change to an annual nominal rate of 2.4%pa compounded monthly. Annual nominal rate of 1.8%pa compounded monthly.

(i) How much is the original monthly repayment?

(ii) How much is the owed at the time of the interest rate fall?

(iii) Assuming the new repayments are calculated after the 120th repayment has been made, provide Andrea with a repayment schedule using excel.

Reference no: EM132917703

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