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Finance Mathematics: Question 1 Question (30 marks] [weight 15%) A couple purchased a...

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Finance

Finance Mathematics: Question 1

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Question (30 marks] [weight 15%) A couple purchased a home and signed a mortgage contract for $500,000 to be paid with half-yearly payments over a 25-year period. The interest rate applicable is j2 = 8,5%pa, applicable for the first five years, with the condition that the interest rate will be increased by 4% every 5 years for the remaining term of the loan Based on the given information, your group is required to use Excel software to: (a) Calculate the half-yearly payment required for each five-year interval [10 marks (b) Calculate the loan outstanding (outstanding balance) at the beginning of each five year interval. [10 marks] (c) Prepare a loan amortization table for the final 12 half-years of the loan term [10 marks] Important Note: 1. Present your solution in an Excel file, and cell reference your calculalation. 2. Once completed, only one member is required to upload the solution using the allocated assignment submission box. 3. Assignment is due on 12 June, 2021

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