Mary-Jane borrows $650,000 to buy a one bedroom apartment. Her loan calls for equal monthly instalments...

Mary-Jane borrows $650,000 to buy a one bedroom apartment. Her loan calls for equal monthly instalments for over 10 years. Interest on the loan is 5% p.a.

At the end of the fifth year, just after paying the instalment due at that time, May has won May won $6million on Powerball and is considering paying out the loan.

Required: How much is required to repay the loan?

Solutions

Expert Solution

AT THE END OF 5TH YEAR MEANS AFTER PAYING 60 MONTHS EMI REMAINING BALANCE IS 365331.63 AS PER FOLLOWING LOAN SCHEDULE

jeff jeffy answered 1 year ago

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