Question

Suppose you apply a 5-year bank loan of $500000 at 12% APR, repayable in equal installments...

Suppose you apply a 5-year bank loan of $500000 at 12% APR, repayable in equal installments at the end of each month.

a. How much do you need to pay each month?

(Round up your answer to the nearest two decimal points)

b.How much is owed (to the bank) at the end of year 3?

(Round up your answer to the nearest two decimal points)

c. How much interest is paid at the first month of year 4 of the loan?

(Round up your answer to the nearest two decimal points)

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