Oliver takes out a home loan of $960,000. For the first 10 years, he only repays the interest amount at the end of each month. After the interest-only period expires, Oliver needs to repay both the principal and the interest amount every month end. Below is the loan repayment schedule for month 132. Month 132 Opening balance of the loan 914,997.77 Interest Paid 2,744.99 Principal Paid 4,165.12 Ending balance of the loan 910,832.65 Using this information answer parts i) and ii) below: Calculate the total interest paid in year 10. (Round your answer to the nearest cent.) (
Oliver takes out a home loan of $960,000. For the first 10 years, he only repays the interest amount at the end of each month. After the interest-only period expires, Oliver needs to repay both the principal and the interest amount every month end. Below is the loan repayment schedule for month 132. Month 132 Opening balance of the loan 914,997.77 Interest Paid 2,744.99 Principal Paid 4,165.12 Ending balance of the loan 910,832.65 Using this information answer parts i) and ii) below: Calculate the total interest paid in year 10. (Round your answer to the nearest cent.) (
Chapter5: Introduction To Business Expenses
Section: Chapter Questions
Problem 61P
Related questions
Question
c
Transcribed Image Text:c) Oliver takes out a home loan of $960,000. For the first 10 years, he only repays the interest amount at the end
of each month. After the interest-only period expires, Oliver needs to repay both the principal and the interest
amount every month end. Below is the loan repayment schedule for month 132.
Month
132
Opening balance
of the loan
914,997.77
il.
Interest Paid
2,744.99
Principal Paid
4,165.12
Ending balance of
the loan
910,832.65
Using this information answer parts i) and ii) below:
i.
Calculate the total interest paid in year 10. (Round your answer to the nearest cent.) (
Calculate the total interest paid in year 11. (Round your answer to the nearest cent.) (
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