Question: Armed with a down payment, take out a loan for 30 year fixed at 8% with a monthly payment of $4,000 a month. a. How

Armed with a down payment, take out a loan for 30 year fixed at 8% with a monthly payment of $4,000 a month.
a. How much would they receive as a loan:
b. Amortize the first three payments on the 6-year loan.

Provide:
• Interest expense for the first three months of the loan
• $$ flows for the first three months of the loan
• Loan Balance at end of the first three months of the loan.

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SOLUTION IN DETAILS To calculate the loan amount we need to use the monthly payment and the interest rate for a 30year fixed loan at 8 a Loan Amount To determine the loan amount we can use the formula ... View full answer

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