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Calculate the effective monthly interest rate

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Jack wishes to borrow $400,000, to be repaid over a period of 20 years by monthly installments. The interest rate is 3.6% p.a. compounded monthly. The first payment is due at the end of the first month.

-Calculate the effective monthly interest rate

-Calculate the amount of the monthly repayment if the same amount is to be repaid every month

-What is the balance owing after 5 years?

-After 5 years, Jack wishes to accelerate the loan repayment by making higher than mandated monthly payments in order to pay off the remaining principal in the next 10 years. What is the new monthly repayment in this accelerated payment schedule? Assuming no penalty for the accelerated payments.

Reference no: EM132638327

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