| 5) Boondocks just borrowed $900,000 to build a new restaurant. The loan terms call for...

Transcribed Image Text:

| 5) Boondocks just borrowed $900,000 to build a new restaurant. The loan terms call for equal monthly payments at the end of each month. The loan is for 15 years at an APR of 8.50 percent. n 1% px 180 8.5 900000 pmt 8,862.66 0 fx a. How much is each payment? 5(a) b. How much total interest will be paid over the life of the loan? HINT: first, consider how much will be paid overall for the 15 years and remember that the total is principal and interest. 5(b) c. How much of the FIRST monthly payment will be used to reduce the principal balance of the loan? d. What is the EAR of this loan? 5(c) 5(d) | 5) Boondocks just borrowed $900,000 to build a new restaurant. The loan terms call for equal monthly payments at the end of each month. The loan is for 15 years at an APR of 8.50 percent. n 1% px 180 8.5 900000 pmt 8,862.66 0 fx a. How much is each payment? 5(a) b. How much total interest will be paid over the life of the loan? HINT: first, consider how much will be paid overall for the 15 years and remember that the total is principal and interest. 5(b) c. How much of the FIRST monthly payment will be used to reduce the principal balance of the loan? d. What is the EAR of this loan? 5(c) 5(d)