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A young couple borrows $800 000 from a bank to be repaid in equal monthly instalments of $x at the end of each month. Interest at the rate of 3.6% p.a. is charged on the amount owing for that month. If A, is the amount owing at the end of the nth month: (a) Write down an expressions for A₁. (b) (c) (d) Show that A3 = 800 000(1.003)³-x(1.003² +1.003+1). Show that A, 800 000(1.003)x(1.003"-1) 0.003 Calculate the value of each monthly instalment ($x) if the loan is paid off over twenty years.

A young couple borrows $800 000 from a bank to be repaid in equal monthly instalments of $x at the end of each month. Interest at the rate of 3.6% p.a. is charged on the amount owing for that month. If A, is the amount owing at the end of the nth month: (a) Write down an expressions for A₁. (b) (c) (d) Show that A3 = 800 000(1.003)³-x(1.003² +1.003+1). Show that A, 800 000(1.003)x(1.003"-1) 0.003 Calculate the value of each monthly instalment ($x) if the loan is paid off over twenty years.

Algebra and Trigonometry (6th Edition)
Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
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A young couple borrows $800 000 from a bank to be repaid in equal monthly instalments of $x at the end of each month. Interest at the rate of 3.6% p.a. is charged on the amount owing for that month. If An, is the amount owing at the end of the nth month: (a) Write down an expressions for A₁. (b) Show that A3 = 800 000(1.003)³-x(1.003² + 1.003 + 1). Show that An = 800 000(1.003)x(1.003"-1) 0.003 Calculate the value of each monthly instalment ($x) if the loan is paid off over twenty years. (c) (d)
Transcribed Image Text:A young couple borrows $800 000 from a bank to be repaid in equal monthly instalments of $x at the end of each month. Interest at the rate of 3.6% p.a. is charged on the amount owing for that month. If An, is the amount owing at the end of the nth month: (a) Write down an expressions for A₁. (b) Show that A3 = 800 000(1.003)³-x(1.003² + 1.003 + 1). Show that An = 800 000(1.003)x(1.003"-1) 0.003 Calculate the value of each monthly instalment ($x) if the loan is paid off over twenty years. (c) (d)
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