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3) You have agreed to a $50,000 loan from First National Bank today and promise to...

3) You have agreed to a $50,000 loan from First National Bank today and promise to repay the loan in three years at an APR of 6.50%.

a) How much is your monthly payment? (7 POINTS)

b) How much interest will you pay for your first payment? (Hint: You can refer to the amortization schedule or compute manually.)

c) How would making an extra payment each month affect the total payment and the total interest? Explain your answer.

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