Question

You have just arranged a three-year bank loan for $200,000 at an interest rate of 8% p.a. with interest compounded monthly. The loan will be repaid in equal monthly instalments and the first payment will be due one month from today. Assuming end-of-the-month cash flows, the total interest paid in the second month will be closest to:

$1,300.

$1,333.

$4,967.

$6,267.

Answer 1

PV=$200,000

R=8%/12=0.67%

N=3*12=36

=6261

monthly payment is 6261

second month is 1300

OPTION IS A CORRECT

if you like my work give me thumbs up