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1. You take out a loan for 10000. You pay off the loan with monthly payments of 90 for 10 years. (a) What is the

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1. You take out a loan for 10000. You pay off the loan with monthly payments of 90 for 10 years. (a) What is the monthly effective rate? What is the annual effective rate? [0.128937%, 1.55827%] (b) What is the outstanding loan balance immediately after the 7th payment? Calculate using both the retrospective and prospective formulas. [9458.16) (c) Assume you miss the 13th and 53rd payments, what will be the outstanding loan balance after the 71st payment? [4460.01] e 1. You take out a loan for 10000. You pay off the loan with monthly payments of 90 for 10 years. (a) What is the monthly effective rate? What is the annual effective rate? [0.128937%, 1.55827%] (b) What is the outstanding loan balance immediately after the 7th payment? Calculate using both the retrospective and prospective formulas. [9458.16) (c) Assume you miss the 13th and 53rd payments, what will be the outstanding loan balance after the 71st payment? [4460.01] e

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