A couple purchased a home loan and signed a mortgage contract for 900,000 to be paid with half – yearly payments over a 25-year period. The interest rate applicable is j2 = 5.5% p. a. applicable for the first five years, with the condition that the interest rate will be increased by 12% every 5 years for the remaining term of the loan. Based on the given information, your group is required to use Excel software to:
a. Calculate the half yearly payment required for each five-year interval
b. Calculate the loan outstanding (outstanding balance) at the beginning of each five year interval
c. Calculate the loan amortization table for the final 12 half years of the loan term