Question #$5$

Ten years ago John & Joan borrowed $$14,500,000$ at $12\%$ interest $($compounded monthly$)$

to finance the purchase of their dream home. The loan is being repaid monthly over $15$

years. They have now decided to pay off the principal balance outstanding on the loan from

their accumulated savings.

$($i$)$ At minimum, how much would they need to have saved up to pay off the loan now?

$($ii$)$ What percentage of their total loan payments over the $10$ years have been used to

pay down the principal balance?

$($iii$)$ How much interest in total would they have paid on the loan over those $10$ years?

Solve and explain