A couple purchased a home and signed a mortgage contract for $400,000 to be paid with half-yearly payments over a 25-year period
. The interest rate applicable is j2 = 7.5% p.a. applicable for the first five years, with the condition that the interest rate will be increased by 9% every 5 years for the remaining term of the loan. Based on the given information. your group is required to use Exxcel software to: (a) Calculate the half-yearly payment required for each five-year interval |10 marks (b) Calculate the loan outstanding (outstanding balance) at the beginning of each five year interval. [10 marks| (c) Prepare a loan amortization table for the final 12 half-years of the loan term. |10 marks
In the table shown you can see the values for the function when it approaches zero, from the right and from the left. In the graph you can notice that the function tends to -1 for values close to 0 (both from the right and from the left), as might be expected from a function that cuts the "y" axis at -1.
