How much is the principal repayment

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Reference no: EM131962654

Suppose you go to a bank to borrow $200,000. The bank offers you a 15-year loan with a 12% APR compounded monthly. (Use manual calculations)

a) If you have to repay the loan in equal monthly installments, what is the amount of each monthly payment?

b) How much of the third payment is interest and how much is the principal repayment?

c) What is the remaining principal on your loan after 12 months?

d) If you pay an extra $100 each month for the first 12 months, what will the remaining principal on the loan be after 12 months?

Reference no: EM131962654

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