Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. sue and sam borrowed $45,000 to buy a home unit. t

Sue and Sam borrowed $45,000 to buy a home unit. The bank loan is repayable...

70.2K

Verified Solution

Question

Finance

Sue and Sam borrowed $45,000 to buy a home unit. The bank loan is repayable in equal half-yearly instalments over 25 years at an interest rate of 12% per annum. Two and a half year's later the interest rate has risen to 14%. As they cannot increase their repayments, Sam asks the bank to extend the loan period. The bank refuses their request. Required:

i. Calculate the instalment payments for the loan.

ii. Calculate the amount of the loan still outstanding when the interest rate rises.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Consider the Characteristics of Design Thinkers. Which of these characteristics describe you? Give an example of...

Electrical Engineering
Q

Question 16 of 60 Quadrant I of the standard x y coordinate plane is shown...

Geometry
Q

It takes Destiny 4 hours to file allthe daily paperwork. It takesSusan 5 hours to...

Basic Math
Q

Suppose that X and Y are two random variables. E(X) = 0, E(Y) = 1,...

Statistics
Q

Solve the equation for x.arctan (7x- 9) = -1Step 1The original equation arctan (7x -...

Calculus
Q

Let A 1 2 1 3 and Q 9 Q 3 67 6 5 5...

Algebra
Q

Perform the indicated operations 9 3i 6 i 9 3i 6 i Simplify your answer...

Algebra
Q

Perpetual inventory using FiFo Beginning inventory, purchases, and sales data for DVD players are as...

Accounting
Q

View Policies Current Attempt in Progress Swifty Family Instruments makes cellos. During the past...

Accounting
Q

In an effort to concentrate its resources in more profitable areas, Southern Steel Corporation recently...

Accounting
Q

I only need answer for H and I part, i.e. last two parts of the...

Accounting
Q

mentamen Man dowegmentetion octor Binprogrentale Doo Aging of Receivables: Estimating Allowance for Doubtful Accounts Wia...

Accounting