Question

# Now that she has accumulated a deposit of $100,000, Wendy wishes to... Now that she has accumulated a deposit of$100,000, Wendy wishes to use this deposit and take out a housing loan to purchase a home. The home costs \$900,000. The loan is to be repaid in equal quarterly instalments over a term of 15 years. Wendy recalls that the interest rate quoted by the bank is an annual nominal rate of 3.2%pa compounded quarterly. After 5 years (20th repayment just about to be made), Wendy gets a large bonus at work and decides to pay out what is owing on the loan.

(i) How much is the quarterly repayment?

(ii) How much is owed at the time of the pay out?

(iii) Provide Wendy with a repayment schedule using excel at the time the loan is made.

Solved by verified expert

dictum vitae odio. Donec aliquet. Lorem

molestie consequ

gue

, ultrices ac magna. Fusce dui lectus, congue v

Donec aliquet. Lorem

gue

at, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Done

ge vel laoreet ac, dictum vitae

Explore over 16 million step-by-step answers from our library

Step-by-step explanation

ipsum dolor sit amet,s antes a moles

or nec facilisis.molestiitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac

ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae od

rem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pul

gue

ac, duscur laoreet. Nam

gue

congue vel laoreet ac, d

gue

ce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing el

1 Attachment
png
Student reviews
50% (2 ratings)
Thorough explanation