英语翻译
You have borrowed $300,000 from bank to buy a house.The terms of the loan is for 30 years and payments are made at the end of every month starting from the first month after you made the purchase.
(a) Your bank has fixed the annual interest rate at 5.5% for the first 10 years and then at 7% for the rest of the loan term.Interests are compounded monthly.How much would your monthly repayment be?
(b) Before you sign the contract,the Reserve Bank of Australia raises its short term interest rate by 0.25%.Now the bank is offering you 5.75% introductory interest rate for the first 10 years and 7.25% for the last 20 years.By how much do your home loan repayments increase?Compare that to what you hear from the media.