QUESTION 5 Please use excel
Chapter9: Obtaining Affordable Housing
Section: Chapter Questions
Problem 5DTM
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QUESTION 5 Please use excel
Robert has borrowed $339,000 to purchase a house in the current year at 5.5% interest rate, with a commitment to repay the loan (principal and interest) in equal annual instalments over the following 15 years. Calculate the:
a) the yearly annuity payment is = $
b) the amount of the principal repayment in year 2 is = $
c) total amount of interest paid = $
d) if the interest rate decreases to 3% the total amount paid over the life of the loan would be = $
Provide your answers to 2 decimal places. Show all your working in your spreadsheet.
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