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

Question details

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?

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