How much of the twelfth payment will be interest

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A man borrows $120,000 to buy a home. The interest rate is 4.5%, compounded monthly, and its period is 30 years.
a) What will be the monthly payment (equal payments) for the life of the loan?
b) What will be the effective annual interest rate, ieff ?
c) How much of the first payment will be interest?
d) How much of the twelfth payment will be interest?

Reference no: EM13235576

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