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Please show work Monthly Payments Using the following formula for interest compounded monthly where n= years to payoff, r= the interest rate, x= payments per
Please show work
Monthly Payments Using the following formula for interest compounded monthly where n= years to payoff, r= the interest rate, x= payments per month, A= the principle Amount of the loan. Suppose a loan of $800,000 at 4% fixed rate. N=25.04(ln(x12Arx)). A) What is the minimum monthly payment to keep the loan from growing- that is what is the Interest-Only Payment B) How long will it take to pay off the loan with payments of $3000 per month (round to nearest decimal) C) What is the total amount of interest paid (round to nearest $100) ? D) What if I increase my payments to $4000, how long will it take to pay off (round to nearest 1 decimal)? E) What is the total amount of interest paid now (round to nearest $100)Step by Step Solution
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