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Question - Andrew borrows $2,500,000 to purchase a warehouse. The annual interest rate on the loan is 7.25%, and the term of the loan is 15 years. Answer the following questions about this loan:
a. What is the monthly payment necessary to amortize this loan?
b. What is the balance on the loan at the end of month 36?
c. How much interest will Andrew pay in month 37?
d. How much principal will Andrew pay in month 37?
e. How much principal will Andrew pay in the fourth year of this loan (payments 37 through 48)?
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