3 years later at 25 years old, George succeeded with his investment goals. However, his plans have changed due to meeting the love of his life, Stephanie Gerrard. They decided to purchase a property together. Like George, Stephanie also invested successfully. Together, they have combined cash of $220 000, and they would like to allocate $130 000 as deposit for their first home, with the rest of the money gradually invested into bonds and shares. George and Stephanie have decided to purchase a house in Epping to live in for $1 300 000. In order to fund the purchase, George has arranged an 90% loan from the bank, which they will pay off on a monthly basis over a 30-year period. The interest rate on the loan is 2.55% p.a.
3 years later at 25 years old, George succeeded with his investment goals. However, his plans have changed due to meeting the love of his life, Stephanie Gerrard. They decided to purchase a property together. Like George, Stephanie also invested successfully. Together, they have combined cash of $220 000, and they would like to allocate $130 000 as deposit for their first home, with the rest of the money gradually invested into bonds and shares. George and Stephanie have decided to purchase a house in Epping to live in for $1 300 000. In order to fund the purchase, George has arranged an 90% loan from the bank, which they will pay off on a monthly basis over a 30-year period. The interest rate on the loan is 2.55% p.a.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Concept explainers
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
Question
5) What will George’s monthly repayments be on his loan once the property is settled
and complete?
please Show formula, variables, calculations and a concluding statement in your response
Transcribed Image Text:3 years later at 25 years old, George succeeded with his investment goals. However, his
plans have changed due to meeting the love of his life, Stephanie Gerrard. They decided to
purchase a property together. Like George, Stephanie also invested successfully. Together,
they have combined cash of $220 000, and they would like to allocate $130 000 as deposit
for their first home, with the rest of the money gradually invested into bonds and shares.
George and Stephanie have decided to purchase a house in Epping to live in for $1 300 000.
In order to fund the purchase, George has arranged an 90% loan from the bank, which they
will pay off on a monthly basis over a 30-year period. The interest rate on the loan is 2.55%
p.a.
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