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Compute annual end of year payments to the commercial bank

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Question - Mark Gore plans to get married and he wants to purchase a house for $1,800,000. He entered into an agreement with National Housing Trust (NHT) to provide 50% financing which involved monthly payments over five (5) years at 12% per annum. The remainder of the funds would be borrowed from his commercial bank. Terms of the bank loan are 10% down payment with the balance to be repaid at 20% interest over three (3) years.

A. Calculate monthly payments to NHT if payments are made at the end of each month.

B. Compute annual end of year payments to the commercial bank.

C. Considering B. above, prepare the amortisation schedule for this loan.

Reference no: EM133021568

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