Suppose you plan to purchase a $250,000 home. You plan to put 5% down, and take a loan from the bank for the remaining amount. The bank has offered you a 30-year loan with a 4.5% APR (compounded monthly). Calculate the total interest paid to the bank in the 2nd year of the loan

Answer rating: 100% (QA)

To calculate the total interest paid to the bank in the 2nd year of the loan we first need to determ... View the full answer