Question: 2. You borrow $15 500 at 6.7% compounded monthly. The loan is to be repaid in 6 years. a) How much will you have

2. You borrow $15 500 at 6.7% compounded monthly. The loan is

2. You borrow $15 500 at 6.7% compounded monthly. The loan is to be repaid in 6 years. a) How much will you have to pay back? (2) b) How much interest will you pay? (1) 3. You take out a 4.44% loan, compounded semi-annually, that will be repaid in 2 years. You will only be able to spend $55 000 to pay off the loan. a) How much money will you borrow for the loan? (2) N = 196 PV = I PMT= FV = P/Y = C/Y = b) How much interest do you end up paying? (1)

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