Assume Sam borrowed $120,000 for a home mortgage, to be repaid at 8% interest over 3 years with monthly payments.

1. How many monthly payments does Sam has to pay for 3 year?
2. How much is the monthly payment?
3. How much is the interest payment for the third month?
4. How much interest is paid over the life of the loan?

Hint:

• Annual percentage rate (APR) = ??
• Monthly discount rate (rate) = ??
• Number of payment (Nper) = ??
• Monthly payment (pmt) = ??
• pmt(rate, nper, pv, fv =0, type= 0) = ??
• the monthly payment schedule for the next 3 years.