I am stuck and honestly don't know how to tackle this at all
if you were to borrow $600,000 to borrow money for a house, over 20 years, at an interest rate of 3.7% compounding annually with fortnightly repayments, what would be your fortnightly repayment? I tried using the compound interest formula but the answer seems off ...
How did you attempt to use the compound interest formula for this?
The compound interest formula won't work due to the fortnightly repayments, because each repayment adjusts the balance "directly", which thereby reduces the amount of interest added to the balance over the next fortnight, and so on. Note that this process is different from, first, calculating the total amount of debt that is built up over 20 years with a principal of $600 000 with 3.7% p.a. compounding fortnightly then, secondly, calculating the fortnightly repayment by dividing that total debt by 20*26.
This question is best done using a TVM solver on CAS.