Mailings Review View Help Acrobat FIN 200 Intro of Finance Installment Loans and Amortization Problems You take out a 3-year car loan for $25,000. The rate is 8%, compounded monthly a. What will your monthly payment be? b. Why is the total of all monthly payments more than the amount you borrowed? c. How much principal will you still owe after your first monthly payment (HINT: you can use Excel to calculate this and paste in the whole amortization table, but there is a quicker way to do it)? d. How much interest will you owe the second month (HINT: you can use Excel to calculate this and paste in the whole amortization table, but there is a quicker way to do it)? e. Is the interest you owe the second month less than the same as, or more than the interest you owe the first month, and why? 2. You take out a 15-year mortgage for $300,000. The rate is 3%, compounded monthly a. What will your monthly payment be? b. How much interest do you owe at the end of the first month (before you make the first payment)? Focu - payment c. How much of your principal (the amount you borrowed from the bank), will you be able to pay off at the end of the first month (after you make the first payment)? d. At the end of the 15 years, after you pay your last monthly payment, how much total principal will you have paid back (HINT: you can use Excel to calculate this and paste in the whole amortization table, but there you don't even need a calculation - just explain your answer)? e. How much interest will you have paid, over the life of the loan (HINT: you can use Excel to calculate this and paste in the whole amortization table, but there is a quicker way to do it). f. What is your EAR on this loan? Do 1 L G 0