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An individual borrows $100,000 for 30 years at a simple annual rate of interest of 3...

An individual borrows $100,000 for 30 years at a simple annual rate of interest of 3 percent. Payments are in the form of a monthly regular or ordinary annuity.

1. What is the payment on principal at the end of the first month?

2. What is the dollar amount of each monthly regular or ordinary annuity payment?

a.

$422.66
b.

$421.60
c.

$420.55
d.

$171.60
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Answer #1

For 2) Answer is

b.

$421.60

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