5. Modelling Financial Situations
Interactive practice questions
Calculate the annual installments needed to pay off a $\$110000$$110000 home loan at $7%$7% p.a. reducible interest if the installments are to be paid in equal amounts over $15$15 years. Give your answer correct to the nearest cent.
Annual installments on a $\$1000$$1000 loan
| Term of loan in years | |||||
|---|---|---|---|---|---|
| Annual interest rate | $10$10 | $15$15 | $20$20 | $25$25 | $30$30 |
| $5%$5% | $129.50$129.50 | $96.34$96.34 | $80.24$80.24 | $70.95$70.95 | $65.05$65.05 |
| $6%$6% | $135.87$135.87 | $102.96$102.96 | $87.18$87.18 | $78.23$78.23 | $72.65$72.65 |
| $7%$7% | $142.38$142.38 | $109.79$109.79 | $94.39$94.39 | $85.81$85.81 | $80.59$80.59 |
| $8%$8% | $149.03$149.03 | $116.83$116.83 | $101.85$101.85 | $93.68$93.68 | $88.83$88.83 |
| $9%$9% | $155.82$155.82 | $124.06$124.06 | $109.55$109.55 | $101.81$101.81 | $97.34$97.34 |
| $10%$10% | $162.75$162.75 | $131.47$131.47 | $117.46$117.46 | $110.17$110.17 | $106.08$106.08 |
| Term of Loan in years | |||||
| Annual interest rate | $10$10 | $15$15 | $20$20 | $25$25 | $30$30 |
| $5%$5% | $129.50$129.50 | $96.34$96.34 | $80.24$80.24 | $70.95$70.95 | $65.05$65.05 |
| $6%$6% | $135.87$135.87 | $102.96$102.96 | $87.18$87.18 | $78.23$78.23 | $72.65$72.65 |
| $7%$7% | $142.38$142.38 | $109.79$109.79 | $94.39$94.39 | $85.81$85.81 | $80.59$80.59 |
| $8%$8% | $149.03$149.03 | $116.83$116.83 | $101.85$101.85 | $93.68$93.68 | $88.83$88.83 |
| $9%$9% | $155.82$155.82 | $124.06$124.06 | $109.55$109.55 | $101.81$101.81 | $97.34$97.34 |
| $10%$10% | $162.75$162.75 | $131.47$131.47 | $117.46$117.46 | $110.17$110.17 | $106.08$106.08 |
Easy
2min
Using the financial table, calculate the monthly instalments required to pay off a $25$25-year loan of $\$1000$$1000 at $4%$4% p.a. monthly reducible interest.
Easy
1min
Using the financial table, calculate the monthly instalments required to save $\$50000$$50000 in $15$15 years if the savings account earns $3%$3% interest per annum, compounded monthly.
Easy
1min
Using the financial table, calculate the monthly instalments required to pay off a $15$15-year loan of $\$200000$$200000 at $7%$7% p.a. monthly reducible interest.
Easy
1min
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