**** please hand-write, not a spreadsheet ****

A 200,000 dollar loan is taken out. Interest is 6 percent nominal, converted monthly. The loan is to be paid off by monthly payments, at the end of each month.

a. If the loan is to be paid off after 15 years, compute:

1) the monthly payment

2) the remaining balance after 5 and 10 years of payments

3) the total interest paid throughout the life of the loan.

b. If the loan is to be paid off after 30 years, compute:

1) the monthly payment

2) the remaining balance after 10 and 20 years of payments

3) the total interest paid throughout the life of the loan.