Q13. A loan of $12,000 made at 8% compounded monthly is amortized over 6 years by making equal monthly payments. (i) What is the size of the monthly payment (PMT)? (ii) What is the total amount paid to amortize the loan? = PMT x the total number of payments (n) (iii) What is the cost of financing? = Total amount paid PV

Q14. Hank borrowed $25,000 on a loan that charged 6% compounded monthly. He agreed to make monthly payments for 5 years. (i) What is the size of the monthly payment? (ii) For the first payment, how much of the payment is interest? (iii) For the first payment, how much of the loan principal is repaid? I=Pit i=j/m (iv) After the first payment, how much of the loan remains to be paid?