Miss Payne borrows $300,000 mortgage loan from the bank with APR 3.66%.
(a) What is the monthly effective interest rate? The monthly effective rate r satisfies the equation (1 + r) ^12 = 1.0366.
(b) Miss Payne pays $1500 at the beginning of each month, and the first payment will be made 1 month after the day she borrows the money. Find the recurrence relation of the balance at the end of the month.
(c) How long would it take to pay off the debt?