ANZ Bank lends $140, 000 to a customer for 7 years at a rate of 13.75% with monthly repayments. [All questions are equally weighted] (a) How much are the monthly repayments? (Give answer to 2 decimal places) (Give answer to 2 decimal places) (b) After 27 months of continuous repayments, the customer is unable to pay. What is the remaining value of the loan just after making the last payment before stopping (i.e. payment number 27)? (Give answer to 2 decimal places) (c) If the customer is unable to repay anything for one year and there is no extension on the loan maturity, how much are the monthly payments if the customer restarts the payments and intends to repay the loan on time? (Give answer to 2 decimal places)
ANZ Bank lends $140, 000 to a customer for 7 years at a rate of 13.75% with monthly repayments. [All questions are equally weighted] (a) How much are the monthly repayments? (Give answer to 2 decimal places) (Give answer to 2 decimal places) (b) After 27 months of continuous repayments, the customer is unable to pay. What is the remaining value of the loan just after making the last payment before stopping (i.e. payment number 27)? (Give answer to 2 decimal places) (c) If the customer is unable to repay anything for one year and there is no extension on the loan maturity, how much are the monthly payments if the customer restarts the payments and intends to repay the loan on time? (Give answer to 2 decimal places)
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 17P
Related questions
Question
![ANZ Bank lends $140, 000 to a customer for 7 years at a rate of 13.75% with monthly repayments.
[All questions are equally weighted]
(a) How much are the monthly repayments? (Give answer to 2 decimal places)
(Give answer to 2 decimal places)
(b) After 27 months of continuous repayments, the customer is unable to pay. What is the remaining value of the loan just after making the
last payment before stopping (i.e. payment number 27)?
(Give answer to 2 decimal places)
(c) If the customer is unable to repay anything for one year and there is no extension on the loan maturity, how much are the monthly
payments if the customer restarts the payments and intends to repay the loan on time?
(Give answer to 2 decimal places)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0018f4d5-76cd-4a94-a07d-9ccfaf7c7b25%2F2b10f382-a9d3-47c5-8748-9f0014e0f38a%2Faexr3ce_processed.jpeg&w=3840&q=75)
Transcribed Image Text:ANZ Bank lends $140, 000 to a customer for 7 years at a rate of 13.75% with monthly repayments.
[All questions are equally weighted]
(a) How much are the monthly repayments? (Give answer to 2 decimal places)
(Give answer to 2 decimal places)
(b) After 27 months of continuous repayments, the customer is unable to pay. What is the remaining value of the loan just after making the
last payment before stopping (i.e. payment number 27)?
(Give answer to 2 decimal places)
(c) If the customer is unable to repay anything for one year and there is no extension on the loan maturity, how much are the monthly
payments if the customer restarts the payments and intends to repay the loan on time?
(Give answer to 2 decimal places)
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