What is the monthly payment necessary to amortize this loan

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Reference no: EM131942927

Ron borrows $3,000,000 to purchase a warehouse. The annual interest rate on the loan is 8.25 percent, and the term of the loan is 15 years.

A: What is the monthly payment necessary to amortize this loan? Round your answer to the nearest penny. Do not include any punctuation except a decimal point.

B: What is the balance on the loan at the end of month 36? Round your answer to the nearest penny. Do not include any punctuation except a decimal point.

C: How much interest will Ron pay in month 37? Round your answer to the nearest penny. Do not include any punctuation except a decimal point.

D: How much principal will Ron pay in month 37? Round your answer to the nearest penny. Do not include any punctuation except a decimal point.

E: How much principal will Ron pay in the fourth year of this loan (payments 37 through 48)? Round your answer to the nearest penny. Do not include any punctuation except a decimal point.

F: Suppose the loan requires the borrower to pay two discount points at the time of origination. If Ron keeps this loan for the full term of 180 months, what is his effective interest rate? If you think the answer is 12.10%, enter your answer as 12.1

G: Suppose the loan requires the borrower to pay two discount points at the time of origination. If Ron prepays the loan at the end of month 48, what is his effective interest rate? If you think the answer is 7.45%, enter your answer as 7.45

H: Suppose Ron refinances the loan at the end of month 48 at the prevailing interest rate of 8%. Rather than reducing his monthly payment, however, Ron decides to continue making the same monthly payments. How many months must Ron continue to make the payments on this new loan? (Round your answer to two decimal places. For example, if you think the answer is 34.578 months, enter 34.58.)

Reference no: EM131942927

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