I lent $40,000 to my friend on Jan 1 2002 at 9% nominal interest rate compounded monthly to be returned through equal monthly payments over 30 years. Please note that payments for each month are made at the end of every month starting Jan 1 2002. What was the monthly payment for this loan? After making 60 payments (1/2002 through 12/2006), my friend was unable to make any payments for the next 5 years (1/2007 through 12/2011). In Jan 2012 he requested me to rewrite the contract to retroactively lower the rate of interest for the loan from 9% to 4% for the entire loan duration. I accepted his request and asked him to pay the remaining amount on the loan in monthly installments over 20 years. What should be the new monthly payment for the 20 years?