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What is the outstanding balance of the loan today

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Question - Phuc took out a 30-year $900,000 home loan five years ago at an interest rate of 4.5% per annum, compounded monthly. The loan requires Phuc to make regular end-of-month repayments where the first repayment started a month after the loan was granted.

a) Calculate the monthly repayment.

b) Calculate the principal repayment in the second month after the loan was taken.

c) What is the outstanding balance of the loan today?

d) After the 60th payment, Phuc asked the bank to freeze his repayments while he was looking for another job due to COVID. The bank agreed to give Phuc a 9-month freeze on repayments; however, interest still accrues during the repayment freeze period. Phuc is confident that he will be able to find a job very soon and he still wants to fully repay the loan at the original date, what will his new monthly repayment be when he recommences payments in 9 months' time?

Reference no: EM132913153

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