Jenny and Leo plan to purchase a new house and the couple is able to obtain a 25-year 3.6% (per annum, compounded monthly) amortised loan but they must put down 20% deposit. The loan requires end-of-month repayments of $2,500 where the first payment is due a month after the loan is taken. Assuming that the couple has enough savings for the down payment, what is the cost of the house that they want to purchase? a. 494,068.50 Ob. 2,470,342.49 750.000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Jenny and Leo plan to purchase a new house and the couple is able to obtain a 25-year 3.6% (per
annum, compounded monthly) amortised loan but they must put down 20% deposit. The loan requires
end-of-month repayments of $2,500 where the first payment is due a month after the loan is taken.
Assuming that the couple has enough savings for the down payment, what is the cost of the house that
they want to purchase?
a. 494,068.50
b. 2,470,342.49
c. 750,000
Od. 617,585.62
Transcribed Image Text:Jenny and Leo plan to purchase a new house and the couple is able to obtain a 25-year 3.6% (per annum, compounded monthly) amortised loan but they must put down 20% deposit. The loan requires end-of-month repayments of $2,500 where the first payment is due a month after the loan is taken. Assuming that the couple has enough savings for the down payment, what is the cost of the house that they want to purchase? a. 494,068.50 b. 2,470,342.49 c. 750,000 Od. 617,585.62
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