Han received a 9-year \$43\,000 loan at 10\% p.a. monthly reducible interest. He makes monthly instalments of \$209.
Find the amount owing after:
1 month
2 months
3 months
Is the amount owing increasing or decreasing?
Will this loan eventually be paid off if the instalments remain the same? Explain your answer.
Monthly repayments of \$3990 are made on a loan of \$158\,800 borrowed at a rate of 12\% p.a. compounded monthly.
Consider the following table of home loan repayments:
| \text{Month }(n) | \text{Principal }(P) | \text{Interest }(I) | P + I | P + I - R |
|---|---|---|---|---|
| 1 | \$158\,800 | \$1588.00 | \$160\,388.00 | \$156\,398.00 |
| 2 | \$156\,398.00 | \$1563.98 | \$157\,961.98 | \$153\,971.98 |
| 3 |
What is the principal at the beginning of the third month?
Calculate the interest charged for the third month.
How much money is owed at the beginning of the fourth month?
A credit card charges annual interest of 18.24\%.
What is the monthly interest rate on this credit card? Round your answer to 2 decimal places.
Tobias owes \$3200 on his credit card and will pay it all off before using this card again. Examine his payments in the table below and calculate the value of X.
| Month | Interest | Repayment | Amount Owing |
|---|---|---|---|
| 3200 | |||
| 1 | 48.67 | 75 | X |
| 2 | 48.27 | 75 | 3146.93 |
| 3 | Y | 75 | 3119.79 |
| \ldots | \ldots | \ldots | \ldots |
| \ldots | \ldots | \ldots | \ldots |
| 66 | 4.76 | 75 | 242.66 |
| 67 | 3.69 | 75 | 171.35 |
| 68 | 2.61 | 75 | 98.96 |
| 69 | 1.51 | 75 | 25.47 |
| 70 | Z | W | 0 |
Calculate the value of Y, Z, \text{ and } W.
Calculate the total interest paid by Tobias.
What could Tobias have done to avoid paying so much interest?
The following table shows the principal and interest over the first 4 months of a loan:
| \text{Month} | P | I | P +I | P + I - R |
|---|---|---|---|---|
| 1 | \$20\,000 | \$50.00 | \$20\,050.00 | \$19\,150.00 |
| 2 | \$19\,150.00 | \$47.88 | \$19\,197.88 | \$18\,297.88 |
| 3 | \$18\,297.88 | \$45.74 | \$18\,343.62 | \$17\,443.62 |
| 4 | \$17\,443.62 | \$43.61 | \$17\,487.23 | \$16\,587.23 |
Find the value of each repayment, R.
What is the annual interest rate charged on the loan to the nearest percent?
Calculate the value of the principal at the start of month 6.
Ivan takes out a car loan for \$24\,000. He is charged 8.1\% per annum interest, compounded monthly. Ivan makes repayments of \$450 at the end of each month.
| Month | Opening Balance | Interest | Repayment | Closing Balance |
|---|---|---|---|---|
| 1 | 24\,000 | 162 | 450 | 23\,712 |
| 2 | ||||
| 3 |
State the opening balance for month 2.
Calculate the interest for month 2.
State the repayment for month 2.
Calculate the closing balance for month 2.
Complete the table.
Dave took out a loan of \$6500 to start his business on January 1. Interest on the loan is charged at 10\% p.a. from the time the loan is taken out. He made yearly repayments of \$2500 on December 31, beginning in 2012.
| Year | Balance owing at beginning of year | Interest charged in this period | Balance owing at end of year | Balance owing after repayment |
|---|---|---|---|---|
| 1 | ||||
| 2 | ||||
| 3 |
State the balance owing at the beginning of year 1.
Calculate the interest charged in year 1.
State the balance owing at the end of year 1.
Calculate the balance owing after repayment for year 1.
Complete the table.
Mr and Mrs Lyne have a \$520\,000 mortgage for their home. They are charged 5.16\% interest per annum, compounded monthly and make monthly repayments of \$3750.
Complete the table below, using the rounded answer to calculate the amounts for the following month:
| \text{Month } | \text{Opening Balance } (\$) | \text{Interest }(\$) | \text{Repayment }(\$) | \text{Closing Balance }(\$) |
|---|---|---|---|---|
| 1 | 520\,000 | 2236 | 3750 | 518\,486 |
| 2 | ||||
| 3 | ||||
| 4 | ||||
| 5 |
If they made fortnightly repayments of \$1\,875 instead of monthly repayments, what would be the result on the balance of their loan after 10 years?
Kate takes out a personal loan for \$40\,000. The interest on the loan is charged quarterly. Kate makes repayments of \$900 at the end of each quarter. Consider the following table showing the balance and payments for the first year:
| Quarter | Opening Balance | Interest | Repayment | Closing Balance |
|---|---|---|---|---|
| 1 | 40\,000 | 400 | 900 | 39\,500 |
| 2 | ||||
| 3 |
Find the quarterly interest rate Kate is charged for this loan as a percentage.
State the annual interest rate of this loan as a percentage.
Complete the table.
How much of the loan has Kate repaid in the first three quarters of the year?
Maximilian takes out a mortgage to purchase an investment property. A portion of his payments and balances are shown in the table below:
| Month | Opening Balance | Interest | Repayment | Closing Balance |
|---|---|---|---|---|
| 1 | 3500 | 417\,970 | ||
| 2 | 417\,970 | 1\,462.895 | 3500 | |
| 3 |
Calculate the monthly interest rate charged on this loan as an exact percentage.
State the annual interest rate charged on this loan as an exact value percentage.
Find the initial amount borrowed at the beginning of month 1.
Complete the table, rounding your answers to 3 decimal places where necessary.
Xanthe takes out a car loan. The last few months of Xanthe's repayments are shown below:
| Month | Opening Balance | Interest | Repayment | Closing Balance |
|---|---|---|---|---|
| 69 | 868.48 | 4.34 | 250 | 622.82 |
| 70 | 622.82 | 3.11 | 250 | 375.93 |
| 71 | 375.93 | 1.88 | 250 | 127.81 |
| 72 |
Calculate the monthly interest rate charged on this loan. Give your answer as a percentage to one decimal place.
Complete the last row of the table.
How many years did it take for her to pay off the loan?
Calculate her total repayments.
If her loan was for \$15\,000, calculate the total interest paid on the loan.
Mr. and Mrs. Dave have a mortgage. The final months of their repayments are shown in the table below:
| Month | Opening Balance | Interest | Repayment | Closing Balance |
|---|---|---|---|---|
| 146 | 26\,452.84 | 198.40 | 5000 | 21\,651.24 |
| 147 | 21\,651.24 | 162.38 | 5000 | 16\,813.62 |
| 148 | 16\,813.62 | 126.10 | 5000 | 11\,939.72 |
| 149 | 11\,939.72 | 89.55 | 5000 | 7029.27 |
| 150 | 7\,029.27 | 52.72 | 5000 | 2081.99 |
| 151 |
Calculate the monthly interest rate charged on this loan. Give your answer as an percentage to two decimal places.
Complete the last row of the table.
How many years did it take for them to pay off the loan?
Calculate the total repayments.
If they paid \$302\,097.60 in interest, how much did they initially borrow?
A \$2000 loan is to be repaid at a reducible rate of 8\% p.a. There are two possible methods of repayment: repaying \$750 every 6 months or repaying \$375 every 3 months, and the interest is compounded at the same interval as payment.
Complete the repayment table, showing repayments made every 6 months:
| Time period | Balance owing at beginning of period | Balance owing plus interest during period | Repayment | Balance owing at end of period |
|---|---|---|---|---|
| 1 | 2000 | 2080 | 750 | |
| 2 | 750 |
Complete the repayment table, showing repayments made every 3 months:
| Time period | Balance owing at beginning of period | Balance owing plus interest during period | Repayment | Balance owing at end of period |
|---|---|---|---|---|
| 1 | 2000 | 2040 | 375 | 1665 |
| 2 | 1665 | 1698.30 | 375 | |
| 3 | 375 | |||
| 4 | 375 |
Calculate the difference in the balances owing after 1 year.
You take out a personal loan of \$10\,000 at 11\% reducible p.a. The term of the loan is 3 years, and yearly repayments of \$2600 are made. The balance owing is paid at the end of 3 years.
Complete the loan repayment table:
| Time period | Balance owing at beginning of period | Balance owing plus interest during period | Repayment | Balance owing at end of period |
|---|---|---|---|---|
| 1 | 10\,000 | 2600 | ||
| 2 | 2600 | |||
| 3 |
Find the total amount of interest charged on the loan.
Find the total repayment over 3 years.
Hermione takes out a loan for \$36\,000. She is charged 7.4\% per annum interest, compounded annually. At the end of each year, she makes a repayment of \$3600.
Complete the table below:
| Year | Opening Balance | Interest | Repayment | Closing Balance |
|---|---|---|---|---|
| 1 | 36\,000 | 2664 | 3600 | 35\,064 |
| 2 | ||||
| 3 | ||||
| 4 |
If B_n is the closing balance at the end of n years, find the value of B_0
Write a recursive rule that gives the closing balance, B_n, at the end of year n.
Use the sequence facility on your calculator to determine how much is owing on the loan after 9 years.
At the end of which year will the loan have been repaid?
Isabelle takes out a loan for \$170\,000. She is charged 6.7\% per annum interest, compounded annually. At the end of each year, she makes a repayment of \$16\,800.
Complete the table below:
| Year | Opening Balance | Interest | Repayment | Closing Balance |
|---|---|---|---|---|
| 1 | 170\,000 | 11\,390 | 16\,800 | 164\,590 |
| 2 | ||||
| 3 | ||||
| 4 |
Write a recursive rule that gives the opening balance, B_n, at the beginning of year n.
Use the sequence facility on your calculator to determine how much is owing on the loan after 10 years.
At the end of which year will the loan have been repaid?
Vincent takes out a loan for \$68\,000. He is charged 12\% per annum interest, compounded monthly. At the end of each month, he makes a repayment of \$750.
Complete the table below:
| Year | Opening Balance | Interest | Repayment | Closing Balance |
|---|---|---|---|---|
| 1 | 68\,000 | 680 | 750 | 67\,930 |
| 2 | ||||
| 3 | ||||
| 4 |
Write a recursive rule that gives the closing balance, B_{n + 1}, at the end of month n + 1.
Use the sequence facility on your calculator to determine how much is owing on the loan after 3 years.
At the end of which year and month will the loan have been repaid?
Ben takes out a loan for \$16\,000. He is charged 7.8\% per annum interest, compounded monthly. At the end of each month, he makes a repayment of \$124.
Complete the table below:
| Year | Opening Balance | Interest | Repayment | Closing Balance |
|---|---|---|---|---|
| 1 | 16\,000 | 104 | 124 | 15\,980 |
| 2 | ||||
| 3 | ||||
| 4 |
Write a recursive rule that gives the opening balance, B_n, at the beginning of month n.
Use the sequence facility on your calculator to determine how much is owing on the loan after 2 years.
At the end of which year and month will the loan have been repaid?
Kate takes out a loan for \$107\,000. She is charged 4.8\% per annum interest, compounded quarterly. At the end of each quarter, she makes a repayment of \$1700.
Complete the table below:
| Quarter | Opening Balance | Interest | Repayment | Closing Balance |
|---|---|---|---|---|
| 1 | 107\,000 | 1284 | 1700 | 106\,584 |
| 2 | ||||
| 3 | ||||
| 4 |
Write a recursive rule that gives the closing balance, B_{n + 1}, at the end of quarter n + 1.
Use the sequence facility on your calculator to determine how much is owing on the loan after 5 years.
At the end of which year and quarter will the loan have been repaid?
Sandy takes out a loan for \$260\,000. She is charged 9.6\% per annum interest, compounded quarterly. At the end of each quarter, she makes a repayment of \$7500.
Complete the table below:
| Quarter | Opening Balance | Interest | Repayment | Closing Balance |
|---|---|---|---|---|
| 1 | 260\,000 | 6240 | 7500 | 258\,740 |
| 2 | ||||
| 3 | ||||
| 4 |
Write a recursive rule that gives the closing balance, B_{n + 1}, at the end of quarter n.
Use the sequence facility on your calculator to determine how much is owing on the loan after 3 years. Give your answer to the nearest dollar.
At the end of which year and quarter will the loan have been repaid?
Bart borrows \$61\,000 from a banking institution. He is charged 6.6\% per annum interest, compounded monthly. At the beginning of each month, before interest is charged, he makes a repayment of \$400.
Complete the table below:
| Month | Opening Balance | Interest | Repayment | Closing Balance |
|---|---|---|---|---|
| 1 | 61\,000 | 400 | 333.30 | 60\,933.30 |
| 2 | ||||
| 3 | ||||
| 4 |
Write a recursive rule that gives the closing balance, B_n, at the end of month n.
Use the sequence facility on your calculator to determine how much is owing on the loan after 4 years.
At the end of which year and month will the loan have been repaid?
Ivan borrows \$270\,000 from a banking institution. He is charged 9.6\% per annum interest, compounded quarterly. At the beginning of each quarter, before interest is charged, he makes a repayment of \$6900.
Complete the table below:
| Month | Opening Balance | Interest | Repayment | Closing Balance |
|---|---|---|---|---|
| 1 | 270\,000 | 6900 | 6314.40 | 269\,414.40 |
| 2 | ||||
| 3 | ||||
| 4 |
Write a recursive rule that gives the closing balance, B_n, at the end of quarter n.
Use the sequence facility on your calculator to determine how much is owing on the loan after 5 years.
At the end of which year and quarter will the loan have been repaid?
Xavier takes out a mortgage to purchase an apartment. A portion of his payments and balances are shown in the table below. At the beginning of each month, after interest is charged, he makes a repayment of \$2900.
The progress of his loan for the first four months is shown in the table below:
| Month | Opening Balance | Interest | Repayment | Closing Balance |
|---|---|---|---|---|
| 1 | X | 2900 | 408\,740 | |
| 2 | 408\,740 | 1634.96 | 2900 | |
| 3 | Y | |||
| 4 |
Calculate the monthly interest rate, r , charged on this loan.
Calculate the value of X in the table.
Calculate the value of Y in the table.
Write a recursive rule that gives the closing balance, A_n, of the loan after n months and state the initial balance A_0.
Use the sequence facility on your calculator to calculate the value of the final repayment.
Hence calculate the total repayments made.
How much interest does Xavier pay on this loan?
Tara takes out a personal loan to go on a holiday. A portion of her payments and balances are shown in the table below. At the beginning of each quarter, after interest is charged, she makes a repayment of \$350.
The progress of her loan for the first four months is shown in the table below:
| Month | Opening Balance | Interest | Repayment | Closing Balance |
|---|---|---|---|---|
| 1 | X | 2900 | 10\,831.50 | |
| 2 | 10\,831.50 | 178.72 | 350 | |
| 3 | Y | |||
| 4 |
Calculate the quarterly interest rate charged on this loan, to two decimal places.
Calculate the value of X in the table.
Calculate the value of Y in the table.
Write a recursive rule that gives the opening balance, A_n, of the loan at the beginning of n quarters.
Use the sequence facility on your calculator to calculate the value of the final repayment.
Hence calculate the total repayments made.
If Tara had been offered half the rate of interest and everything else remained equal, how would the interest charged on the loan over its lifetime have changed?
Amy buys a car for \$52\,000. She pays a deposit of \$17\,000 from her savings and borrows the remainder through a finance scheme. The interest on the loan is 8.1\% per annum reducible monthly and Amy makes monthly repayments of \$400.
How much is owed at the end of the first month?
Write a recursive rule, B_n, that gives the balance of her loan at the end of n months.
Use the sequence facility of your calculator to determine when the loan will be repaid.
Calculate the amount of Amy’s final repayment.
Hence determine the interest paid on the loan.
How much did Amy actually pay for this car?
Michael buys his first house for \$540\,000. He pays a 5\% deposit and receives a first home owners grant of \$15\,000 from the government. He borrows the remainder from a bank. The interest on the loan is 4.8\% per annum reducible monthly and Michael makes monthly repayments of \$3800.
How much is owed at the end of the first month?
Write a recursive rule, B_n, that gives the balance of the loan at the end of n months.
Use the sequence facility of your calculator to determine when the loan will be repaid.
Calculate the amount of Michael’s final repayment.
How much did Michael actually pay for this house?
If Michael had doubled his monthly repayments and everything else remained the same, how would the length of the loan have changed?
Aaron borrows \$15\,000 to buy a car. He is charged 6.8\% reducible interest compounded monthly. He wishes to pay off the loan in 3 years.
Complete the given table, leaving out the unknown variable.
Hence, use the financial solver on your CAS calculator to find the minimum value of his monthly repayments. Round your answer to the nearest cent.
| Value | |
|---|---|
| N | |
| I\% | |
| PV | |
| Pmt | |
| FV | |
| PpY | |
| CpY |
Derek borrows \$50\,000 at a rate of 9\% (per annum) reducible interest compounded quarterly. At the end of each quarter he makes a repayment of \$1800.
Complete the given table, leaving out the unknown variable.
Hence, use the financial solver on your CAS calculator to find how many quarters it will take for the loan to be repaid.
| Value | |
|---|---|
| N | |
| I\% | |
| PV | |
| Pmt | |
| FV | |
| PpY | |
| CpY |
Mr and Mrs Gwen held a mortgage for 25 years. Over that time they made monthly repayments of \$4500 and were charge a fixed interest rate of 4.4\% per annum, compounded monthly.
Complete the given table, leaving out the unknown variable.
Hence, use the financial solver on your CAS calculator to determine how much Mr. and Mrs. Gwen initially borrowed.
| Value | |
|---|---|
| N | |
| I\% | |
| PV | |
| Pmt | |
| FV | |
| PpY | |
| CpY |
Xanthe borrows \$32\,000 at a rate of 6.5\% (per annum) reducible interest compounded monthly. At the end of each month she makes a repayment of \$380
Complete the given table, leaving out the unknown variable.
Hence, use the financial solver on your CAS calculator to determine how many months it will take for the loan to be repaid.
Calculate the total amount Xanthe paid.
Calculate how much Xanthe paid in interest.
| Value | |
|---|---|
| N | |
| I\% | |
| PV | |
| Pmt | |
| FV | |
| PpY | |
| CpY |
Tara borrows \$15\,000 and is charged quarterly reducible interest at a rate of 7\% per annum compounded quarterly. She wishes to pay off the loan in 7 years.
Complete the given table, leaving out the unknown variable.
Hence, use the financial solver on your CAS calculator to determine the minimum value of her quarterly repayments.
Calculate the total amount Tara paid.
Calculate how much Tara paid in interest.
| Value | |
|---|---|
| N | |
| I\% | |
| PV | |
| Pmt | |
| FV | |
| PpY | |
| CpY |
Tom has a mortgage of \$500\,000 reducible monthly with an annual interest rate of 4.2\%. He makes fortnightly repayments of \$1500. Assume for this question that there are 26 fortnights in a year.
Complete the given table, leaving out the unknown variable.
Hence state the number of full years it will take to pay off the loan.
If Tom would like to pay off his loan in 10 years, find the fortnightly repayment he needs to make, to the nearest dollar.
| Value | |
|---|---|
| N | |
| I\% | |
| PV | |
| Pmt | |
| FV | |
| PpY | |
| CpY |
Fred borrows \$9800 for a skiing holiday. The bank offers a personal loan at 2.25\% p.a compounded monthly. He will make a monthly payment of \$200.
Complete the given table.
Determine the number of whole months it will take until Fred is able to pay the \$9800 loan.
Determine the balance after 51 months.
Calculate the monthly interest rate.
Hence determine the amount of the final payment, including the interest.
| Value | |
|---|---|
| N | - |
| I\% | |
| PV | |
| Pmt | |
| FV | |
| P/Y | |
| C/Y |
Pauline and Brad borrow \$330\,000 for a house extension. The bank offers them 2.75\% p.a compounded daily. They also make a payment of \$67 per day. Assume there are 365 days in a year.
Complete the given table.
Determine the whole number of years it will take until Pauline and Brad pay back the \$330\,000 loan required for the extension.
If they change their payment to \$75 per day, how many whole years will it take until they pay the loan?
How many years do they save by increasing their payment to \$75?
| Value | |
|---|---|
| N | - |
| I\% | |
| PV | |
| Pmt | |
| FV | |
| P/Y | |
| C/Y |
Caitlin borrows \$250\,000 to buy a unit and wants to pay it back before she is 33. She just turned 23 years old and the current interest rate is 3.2\% p.a. compounded monthly. She wishes to find the monthly payment needed to reach her goal.
Complete the given table.
Determine the monthly payment required for Caitlin to repay the \$250\,000 loan by the time she is 33 years old.
How much does she pay in total over the term of the loan?
If she extends the term of the loan to 25 years, how much will her monthly payment be?
How much does she pay in total over the 25 years?
Hence, determine much money she saves if she pays the loan back after 10 years instead of 25years.
| Value | |
|---|---|
| N | |
| I\% | |
| PV | |
| Pmt | - |
| FV | |
| P/Y | |
| C/Y |
Pauline and Jenny take out a loan of \$120\,000 for a new caravan. The loan rate is 3.015\% p.a compounded weekly. They decide to make payments of \$100 per week. Assume there are 52 weeks in a year.
Complete the given table.
Determine the whole number of weeks it will take until Pauline and Jenny pay back the \$120\,000 loan they borrowed for the caravan.
Assuming all payments are equal in size, how much do Pauline and Jenny pay for the caravan?
If they decide to triple their payment to \$300 per week, how many whole weeks will it take them until they pay the loan?
Hence, calculate how much money they save if they triple their payment.
| Value | |
|---|---|
| N | - |
| I\% | |
| PV | |
| Pmt | |
| FV | |
| P/Y | |
| C/Y |
An entrepreneur borrows \$1\,200\,000 from a bank at an interest of 1.85\% p.a. compounded weekly and makes \$5000 per week payments into the loan account. Assume there are 52 weeks in a year.
Complete the given table.
Determine the whole number of weeks it will take until the entrepreneur pays off their loan.
Calculate the amount of the final payment of the loan.
Hence determine the total amount the entrepreneur pays over the duration of the loan.
| Value | |
|---|---|
| N | - |
| I\% | |
| PV | |
| Pmt | |
| FV | |
| P/Y | |
| C/Y |
A business man borrows \$235\,000 from a bank offering a rate of 2.85\% compounded daily. He also makes \$100 per day payments into the account. Assume there are 365 days in a year.
Complete the given table.
Determine the whole number of days it will take until the business man pays off their loan.
Calculate the amount of the final payment of the loan.
Hence calculate how much the businessman pays over the duration of the loan.
| Value | |
|---|---|
| N | - |
| I\% | |
| PV | |
| Pmt | |
| FV | |
| P/Y | |
| C/Y |
Valentina is deciding between two \$109\,000 home loans. She has the capacity to pay \$3400 per month.
Option 1: 3.2\% p.a. over 3 years with fixed monthly repayments of \$3179.
Option 2: 2.6\% p.a. over 3 years with minimum monthly repayments of \$3151 that enables paying more than the minimum monthly repayment
What is the total repayment she will have to make with Option 1?
What is the maximum total repayment she will have to make with Option 2?
Which loan will cost less?
A student borrows \$60\,000 to pay their student loan. The bank offers a reducing balance loan and charges a student rate of 0.95\% p.a. compounded weekly. She wants to pay the loan off completely in 8 years in equal monthly payments. Assume there are 52 weeks in a year.
Complete the given table.
State the monthly payment required.
How much should she pay each month if she wants to pay the loan off in half the time?
| Value | |
|---|---|
| N | |
| I\% | |
| PV | |
| Pmt | - |
| FV | |
| P/Y | |
| C/Y |
A young couple wish to borrow \$210\,000.
Bank 1 is advertising a reducing balance loan with an interest rate of 3.05\% p.a. compounded monthly and quarterly payments of \$5000.
Bank 2 offers them the deal that they can pay the loan in 60 installments of \$4500.
Complete the given table for Bank 1.
Calculate the number of whole quarters it takes until the loan is paid using Bank 1.
Calculate the total amount paid to Bank 2 over the duration of the loan.
Which bank should the couple choose? Explain your answer.
| Value | |
|---|---|
| N | - |
| I\% | |
| PV | |
| Pmt | |
| FV | |
| P/Y | |
| C/Y |
Stephen borrows \$12\,500 to buy a car. The bank offers a reducing balance loan with interest rate of 4.6\% p.a. compounded monthly. Stephen chooses to make weekly payments of \$100 in order to pay off the loan. Assume there are 52 weeks in a year.
What is the balance of the loan after 20 weeks?
How long does it take him to pay off the loan in years? Round your answers to two decimal places.
Kate borrows \$14\,800 to buy a car. The bank offers a reducing balance loan with an interest rate of 3.5\% p.a. compounded monthly. Kate chooses to make weekly payments of \$90 in order to pay off the loan.
What is the balance after 52 weeks?
Approximate how long it takes her to pay off the loan in years. Round your answers to two decimal places.
Valerie borrows \$345\,000 to buy an apartment. The bank offers a reducing balance loan with an interest rate of 2.35\% p.a. compounded monthly. Valerie chooses to make fortnightly payments of \$1250 in order to pay off the loan. Use the financial application on your calculator to answer the following questions. Assume there are 26 fortnights in a year.
What is the balance after 100 weeks?
Approximate how long will it take her to pay off the loan in years? Round your answers to two decimal places.