Kimiko signed a loan agreement requiring payments of $234.60 at the end of every month for six years at 7.2% compounded monthly.
(a) How much was the original loan balance?
(b) If Kimiko missed the first five payments, how much would she have to pay after six months to bring the payments up to date?
(c) How much would Kimiko have to pay after six months to pay off the loan (assuming she missed all the payments)?
(d) If the loan were paid off after six months, what would the total interest cost be?
(e) How much of the total interest cost is additional interest because of the missed payments?