We take a 10year mortgage for 100000 at 975 pa It is to be r

We take a? 10-year mortg?age for ?$100000 at 9.75?% p.a. It is to be repaid in monthly repayments

Can you solve this for me. Thanks

We take a 10-year mortgage for $100,000 at 9.75% p.a. It is to be repaid in monthly repayments (a)What is the repayment amount? Assume that interest is compounded monthly. Which formula should you use to solve this problem? (b) What is the balance outstanding after two years? How much principal and how much interest have been paid? (c) After two years, the interest rate falls to 9.25% pa. What prepayment penalty would make it unattractive to prepay the loan? (a) The formula in it\'s most basic form FV PV= PMT PV- PMT ? D. FV-PV(1 + i)n The repayment amount is (Round to the nearest cent.) The inputs in my calculator will be OA. N 8 IYR-9.75 PMT--(Answer from a) FV 0, Find PV ? B. N-21/YR= 9.75/12 PMT--(Answer from a) FV-0, Find PV ° C. N= 2*12 l/YR= 9.75 PMT=-(Answer from a) FV-0, Find PV 0 D. N= 8*121/YR= 9.75/12 PMT--(Answer from a) FV-0, Find PV The outstanding balance outstanding after two years is $ (Round to the nearest cent.) The amount of principal that has been paid after two years is $and the amount of interest that has been paid after two years is $ (Round to the nearest cent.) The new PV after two years with the same monthly payments is (Round to the nearest cent.) The prepayment penalty would have to be (Round to the nearest cent.) Sto make it unattractive to prepay the loan at least at most

Solution

N = 120, FV = 0, 1/Y= 9.75%/12, PV = 100,000

use PMT function in a financial calculator

monthly payments = 1307.70