Part 1 (Leson 10 exercise)

(Please show me the steps)

Problem 1

a)Principal amount - 17000; b)Annual interest rate - 6.90%;

c)Periods per year - 12; d)Total number of payments - 60;

Question (i)What is monthly payment?

Question(ii) What is the total amount of payments made over the life of the loan?

Problem 2

a)Principal amount - 360000; b)Annual interest rate - 8.00%

c)Periods per year - 12; d)Total number of payments - 360

Question (i)What is the percentage rate per period?

Question(ii)How many months will it take to pay off the loan if you pay an extra 220.13 per month?

Question(iii)What is the total amount of payments made over the life of the loan?

Question(iv)What is the monthly payment?