May borrows $750,000 to buy a unit. Her loan calls for equal monthly instalments for 10 years. Interest on the loan is 6.5% p.a.
Required:
a) What is the monthly repayment on the loan?
b) At the end of the fifth year, just after paying the instalment due at that time, May has a windfall and is considering paying out the loan.
I. How much would it cost to repay the Loan?
II.How much interest would she save?