Every 2 years Mrs Taliga deposits $2000 into a fund that pays interest at j2 = X% p.a. The first deposit is one her 53rd birthday and the last deposit is on her 65th birthday. Beginning 3 months after her 65th birthday and counting every 3 months thereafter, she withdraws equal amounts of $A, which will exactly exhaust the fund on her 79th birthday. Determine $A.
Question:
You take out an $80,000 mortgage at j2 = X% p.a. with a 25 year amortisation period.
a. Determine the monthly payment required, rounded to 2 decimal places.
b. Determine the reduced final payment
c. Determine the total interest paid during the 4th year.
d. At the end of4 years, you pay down an additional $2500 (no penalty), How sooner will the mortgage be paid off?