Mr. Lamb borrowed $85,000 at 11.40% compounded monthly. He agreed to repay the loan in equal monthly payments over 15 years. What is the size of the monthly payment rounded up to nearest cent? How much of the 24th payment is interest? How much of the 137th payment goes towards principal? How much principal was paid down in the third year? Now assume that in part (a) you had rounded the payments down to the nearest dollar, what would be the size of the final payment? 

Answer rating: 100% (QA)

a Monthly loan payment is calculated using PMT function in Excel rate 114 12 converting annual rate ... View the full answer