You are getting ready to purchase your first home. You wish to purchase a $400,000 home...

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You are getting ready to purchase your first home. You wish topurchase a $400,000 home and the bank requires a 20% deposit. Yourfather-in-law will provide whatever amount you need after using thegovernments Homestart scheme and you withdraw your savings fromKiwisaver. Interest rates on a 20-year mortgage with fortnightlypayments are 6 percent per annum.
a. What will your fortnightly payment be on a 20 yearmortgage?
b. After 5 years of paying off this mortgage, you want toincrease your fortnightly payment to $1500. Assuming you have paid$96,000 in interest, when will you have your mortgage paid off?

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a What will your fortnightly payment be on a 20 year mortgage Home Purchase Value 400000 Deposit 20 80000 Loan Amount 320000 Period n in years 20 Frequency of Payments t fortnightly 24 Total Number of Payments n x t 24 x 20 480 Annual Rate of Interest 6 Fortnightly rate of Interest 6 24 025 PVIFA 1 1rt nt rt 27934 See Answer

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You are getting ready to purchase your first home. You wish topurchase a $400,000 home and the bank requires a 20% deposit. Yourfather-in-law will provide whatever amount you need after using thegovernments Homestart scheme and you withdraw your savings fromKiwisaver. Interest rates on a 20-year mortgage with fortnightlypayments are 6 percent per annum.a. What will your fortnightly payment be on a 20 yearmortgage?b. After 5 years of paying off this mortgage, you want toincrease your fortnightly payment to $1500. Assuming you have paid$96,000 in interest, when will you have your mortgage paid off?