Mr. Morningstar borrowed today €280653 from a bank at a 2.9% APR, monthly compounded. Mr. Morningstar is going to pay this loan in constant monthly payments. The first monthly payment occurs one year from now (grace period) and the last in 42 years from now. Assume that Mr. Morningstar is required to compensate the Bank with interests from the grace period.

 

What is the value of each monthly payment?

Answer rating: 100% (QA)

To calculate the value of each monthly payment we need to use the formula for the monthly ... View the full answer