James King bought a house three years ago that cost $750,000. James put up 20% deposit and...

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James King bought ahouse three years ago that cost $750,000. James put up 20% depositand borrowed the rest from FC Bank at a rate of 7.2% per annum,compounded monthly, for 10 years.
Three months ago, FCBank notified James that after the last monthly payment for thethird year, the interest rate on his loan will increase to 9.6% perannum, compounded monthly, in line with market rates. Also, fromthe fourth year of his loan James can either increase the monthlyrepayment (so as to pay off the loan by the originally agreeddate), or he can keep paying the same original monthly repaymentand extend the term of the loan.
Calculate the new monthly repayment if James pays off the loanby the originally agreed date.
Calculate the extra period added to the term of the loan, ifJames keeps on paying the original monthly repayment.

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James King bought ahouse three years ago that cost $750,000. James put up 20% depositand borrowed the rest from FC Bank at a rate of 7.2% per annum,compounded monthly, for 10 years.Three months ago, FCBank notified James that after the last monthly payment for thethird year, the interest rate on his loan will increase to 9.6% perannum, compounded monthly, in line with market rates. Also, fromthe fourth year of his loan James can either increase the monthlyrepayment (so as to pay off the loan by the originally agreeddate), or he can keep paying the same original monthly repaymentand extend the term of the loan.Calculate the new monthly repayment if James pays off the loanby the originally agreed date.Calculate the extra period added to the term of the loan, ifJames keeps on paying the original monthly repayment.