Question
A loan of $370,000 is amortized over 30 years with payments at the end of each month and an interest rate of 8.9%, compounded monthly.
A loan of $370,000 is amortized over 30 years with payments at the end of each month and an interest rate of 8.9%, compounded monthly. Answer the following, rounding to the nearest penny. a) Find the amount of each payment. $ b) Find the total amount of interest paid during the first 15 payments. $ c) Find the total amount of interest paid over the life of the loan. $ d) Find the total of all payments made over 30 years. $ Suppose that payment number 8 is skipped and the interest owed for month 8 is added to the balance. Payments then resume as usual for the remainder of the 30 years. e) Find the balance owing at the end of month 8. $ f) Find the balance remaining after the 360th payment. $
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