Question 2 Jack borrows $200000 from the bank and agrees to repay the loan in equal monthly instalments of $1650 at the end of each month over 26 years and 9 months. The interest rate charged is 9% p.a. compounded monthly. (a) Calculate the amount of money he owes on the first day of the second month. (b) Let B₁, be the amount he owes at the end of n months (after the nº repayment is made). Show that n B₁ = $220000-$20000×1.0075". n (c) On the first day of the eighth year (after the last repayment for the previous year has been made), he decides to increase his monthly repayment by 0.25% each month for a period of 3 months. How much will he owe at the end of this period?

Question 2 Jack borrows $200000 from the bank and agrees to repay the loan in equal monthly instalments of $1650 at the end of each month over 26 years and 9 months. The interest rate charged is 9% p.a. compounded monthly. (a) Calculate the amount of money he owes on the first day of the second month. (b) Let B₁, be the amount he owes at the end of n months (after the nº repayment is made). Show that n B₁ = $220000-$20000×1.0075". n (c) On the first day of the eighth year (after the last repayment for the previous year has been made), he decides to increase his monthly repayment by 0.25% each month for a period of 3 months. How much will he owe at the end of this period?

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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