You wish to buy a house after 4 years. The purchase price of the house, 4 years from now, is expected to be $250,000. You currently have $50,000 as deposit in a bank account. The bank account pays 4% p.a. interest compounded monthly. You have the plan to save $1000 monthly in this bank account over the next 4 years. You expect that you will use the money to which your account will grow for paying parts of the purchase price. Additionally, at the time of your purchase, you have the plan to borrow from the bank to fund the rest of the purchase price of the house. The bank provides home loan at 6.5% p.a. compounded monthly over a span of 20 years and expectantly this rate will remain the same at the time of the purchase. Considering the information, please answer the following:
part a ) To what amount your bank deposit will grow at the time of your purchase (4 years from now?
part b ) How much money will you need to borrow from the bank at the time of purchase?
part c ) What will be your annual repayment for the loan after you have taken it?