To set up the business, you decide to use all your savings. Your parents have been saving $ 2000.00 yearly since you were born and the fixed nominal interest rate was 6%. You are now 27 years old.

a. How much money do you have in your account NOW?

However, the amount is not sufficient and you decide to take a loan of $ 75,000. The bank is offering a 10 year loan that requires a monthly payment. The nominal interest rate is 6%.

b. How much will be your monthly payment?

c. How much interest and principle will be paid in the first month?