\( \definecolor{colordef}{RGB}{249,49,84} \definecolor{colorprop}{RGB}{18,102,241} \)
Courses
About
Login
Register
TVM
Present Value (PV):
Future Value (FV):
Interest Rate (I%, annual):
Number of Periods (n):
Compounding per Year (C/Y):
Payment (PMT):
Calculate
C
⌫
\(\pi\)
e
\(\frac{a}{b}\)
!
←
→
(
)
\(\sqrt{\,}\)
\(a^{b}\)
7
8
9
\(\div\)
log
ln
4
5
6
\(\times\)
cos
cos⁻¹
1
2
3
-
sin
sin⁻¹
0
.
=
+
tan
tan⁻¹
You plan to borrow \(\dollar 400\,000\) to buy a house. You need to repay the loan over 25 years.
Scenario A (The First Offer):
You walk into the first bank you see. They offer you an interest rate of \(7\pourcent\) p.a. compounded monthly.
Calculate the monthly repayment.
Calculate the total interest paid over the 25 years.
Scenario B (The Research):
You decide to spend a few weeks comparing banks and negotiating. You finally find a bank offering \(3\pourcent\) p.a. compounded monthly.
Calculate the new monthly repayment.
Calculate the total interest paid over the 25 years.
Conclusion:
Calculate how much money was saved by doing the research. Conclude on the importance of competition between banks.
Capture an image of your work. AI teacher feedback takes approximately 10 seconds.
Exit