A tree fell on your home and insurance is not going to cover the remaining balance of $40,000 to repair the roof and make the house inhabitable. You go to a bank to find options for a home improvement loan. You are given the following information :

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Suppose the term of the loan is 144 months. a. What is your monthly payment to repay a $40,000 loan? b. Bonus: How much interest do you pay over the life of the loan?