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Mathematics, 08.06.2021 04:50 sunshinesmile71
A couple purchased a home and signed a mortgage contract for $900; 000 to
be paid with half-yearly payments over a 25-year period. The interest rate
applicable is j2 = 5:5% p. a. applicable for the first five years, with the condition
that the interest rate will be increased by 12% every 5 years for the remaining
term of the loan.
(a) Calculate the half-yearly payment required for each five-year interval
(b) Calculate the loan outstanding (outstanding balance) at the beginning of each five-year interval.
(c) Prepare a loan amortization table for the final 12 half-years of the loan term.
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A couple purchased a home and signed a mortgage contract for $900; 000 to
be paid with half-yearly...
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