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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2

Transcribed Image Text:You have just passed ACST1001 and started a summer internship at Harrison Bank,
with Peter as your supervisor. As your first task, Peter has given you some client
accounts and asked you to verify some of the details.
The first file is for a client named Mary, who has a mortgage with the bank. You go
through the file and note the following information for Mary's mortgage
• Initial loan: $450,000
• Term of loan: 35 years
• Repayment frequency: End of each fortnight
Interest rate on loan: i12=i12=4.5%
Using this information, determine the following:
Calculate the size of each of Mary's repayments using the information given above.
Give your answer to the nearest cent, and do NOT include a dollar sign
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