You borrow £300,000 over 30 years to be repaid by level annual repayments. The rate of interest will be 5% per annum effective for the first 15 years and 6% per annum effective thereafter. Find the repayment amount. i) ii) iii) iv) What's the capital outstanding immediately after the 10th repayment is made? What is the interest content of the 10th repayment? What is the capital content of the 10th repayment?
You borrow £300,000 over 30 years to be repaid by level annual repayments. The rate of interest will be 5% per annum effective for the first 15 years and 6% per annum effective thereafter. Find the repayment amount. i) ii) iii) iv) What's the capital outstanding immediately after the 10th repayment is made? What is the interest content of the 10th repayment? What is the capital content of the 10th repayment?
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
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![You borrow £300,000 over 30 years to be repaid by level annual repayments. The rate of interest
will be 5% per annum effective for the first 15 years and 6% per annum effective thereafter.
i) Find the repayment amount.
ii)
iii)
iv)
What's the capital outstanding immediately after the 10th repayment is made?
What is the interest content of the 10th repayment?
What is the capital content of the 10th repayment?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6ef7a26b-1c0e-4fc8-9dff-309625114dcc%2Ff6d51579-a19a-4090-92cd-904492dbfe6d%2Fmgg6i5_processed.png&w=3840&q=75)
Transcribed Image Text:You borrow £300,000 over 30 years to be repaid by level annual repayments. The rate of interest
will be 5% per annum effective for the first 15 years and 6% per annum effective thereafter.
i) Find the repayment amount.
ii)
iii)
iv)
What's the capital outstanding immediately after the 10th repayment is made?
What is the interest content of the 10th repayment?
What is the capital content of the 10th repayment?
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