Question: section a loans and annuities1andnbspandnbspandnbspandnbspandnbspandnbsp mr and mrs tweed borrow...

Section A: Loans and Annuities

1.       Mr and Mrs Tweed borrow $450 000 to buy a house. The loan is at 9% p.a. reducible interest and the monthly repayment is $3775.50.

a)    Copy and complete the table showing the progress of Mr and Mrs Tweed’s loan for the first 3 months.

Month	Principal (P)	Interest (I)	P + I	P + IR
1	$450 000	$3375
2
3

 

 

 

 

 

 

 

b)    After three months, how much have Mr and Mrs Tweed paid off the principal of their loan?