Ron and Robin Reid wish to borrow $540,000 to buy a home.
Question # 00587858
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Updated on: 09/13/2017 01:44 AM Due on: 09/13/2017
Ron and Robin Reid wish to borrow $540,000 to buy a home. The loan from Biggles Bank requires equal monthly repayments over 20 years, and carries.an interest rate of 7.8% per annum, compounded monthly. The first repayment is due at the end of the first month.
Calculate the amount of $X, if Biggles Bank agrees that Ron and Robin will repay the loan by paying the bank $3,300 per month for the first 12 months, then $3,750 a month for the next 12 months, and after that $X per month for the balance of the 20 year term.
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Rating:
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Solution: Ron and Robin Reid wish to borrow $540,000 to buy a home.