You took an interest-only $30,000 5-year loan at the interest rate (APR) of 8% per year. One

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You took an interest-only $30,000 5-year loan at the interest rate (APR) of 8% per year. One year later, the interest rate drops from 8% to 7%. The refinancing cost is $800.

Required

a. Complete an amortization table of the original loan.

b.What is the contractual value of the loan in Year 1?

Related Book For answer-question

Mathematical Statistics with Applications in R

ISBN: 978-0124171138

2nd edition

Authors: Chris P. Tsokos, K.M. Ramachandran

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Posted Date: Feb 09, 2022 12:35 AM

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You took an interest-only $30,000 5-year loan at the interest rate (APR) of 8% per year. One

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Amortization table of the original loan Original Payment 30000 principal 3600 interest 33600 First y... View the full answer

Mathematical Statistics with Applications in R

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