To find the size of the monthly repayment for the Flemings' loan, we can use the formula for amortizing a loan:

$M = P \times \frac{r(1 + r)^n}{(1 + r)^n - 1}$

Where:

• $M$ is the monthly payment.
• $P$ is the principal (the initial loan amount), which is $368,000.
• $r$ is the monthly interest rate. Since the annual interest rate is 4%, the monthly rate is $r = \frac{0.04}{12} = 0.003333$.
• $n$ is the total number of payments. Since the loan term is 25 years, and payments are made monthly, $n = 25 \times 12 = 300$.

Let's calculate the monthly payment $M$.The size of each monthly repayment should be approximately $1,942.44 to amortize the loan at the end of the 25-year term.

Would you like more details, or do you have any questions?

Here are some related questions to expand your understanding:

1. What is the total amount paid over the entire loan term?
2. How much interest is paid over the 25 years?
3. How would a higher interest rate affect the monthly payments?
4. What if the loan term was 30 years instead of 25 years?
5. How do bi-weekly payments impact loan amortization?

Tip: Paying extra toward the principal each month can reduce the overall interest paid and shorten the loan term.