Score: 2 of 14 pts 14 of 14 Question 14: Problem 4.LO5.64 (similar to) Question Help Settings Some banks allow you to skip a loan payment and roll it into your principal. This is especially attractive in January when the Christmas VISA bill arrives. Consider the following simplified example. You renovated your house last year and borrowed $90,000. The term of the loan is three years, the rate is 12% (APR), and the annual (end-of-year) payments are $37,471.41. You can't afford to make the first payment. You want to roll it into your principal. Your bank has offered to increase the size of the second and third payments to allow you to do this. Answer the following two questions. a. What will your new (second and third) loan payments be? (Hold everything else in your loan constant, e.g., remaining amortization period and interest rate.) b. Compare the amount of interest in the two sets of loan payments. How much more interest do you pay over the life of the loan (if you skip the first payment) compared to what you would have paid if you hadn't skipped the first payment? a. What will your new (second and third) loan payments be? (Round to the nearest cent.)