Question: Please Help me with all 3 questions please. I really need these. I promise I will give a thumbs up Amortization Suppose you want to

Please Help me with all 3 questions please. I really need these. I promise I will give a thumbs up

Amortization

Suppose you want to borrow $200,000 from the bank to buy a home and agree to repay the loan in 360 equal monthly payments, including all interest due. The bank charges 0.35% per month on the unpaid balance (4.2% per year compounded monthly).

Answer the following questions about this loan.

  1. How much is the monthly payment? Round to the nearest cent. ________________

  1. After making 360 monthly payments, how much will you have paid in total to the bank? Round to the nearest cent. _____________________

  1. After making 360 monthly payments, how much of what you paid the bank was interest? to the nearest cent. _________________

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!