you are required to prepare a loan repayment schedule of a loan with an interest-only period of the first NPER1 months. During the first NPER1 months, only the interest amount (IO) is paid at the end of each month. After the first NPER1 months, an equal month-end repayment including principal and interest (P&I repayments) is made at the end of each month for NPER2 months until the end of the loan term.

NPER1 Number of months with interest only repayments : 36

Number of years, n, with Principal & Interest (P&I) repayments : 25

NPER2 Number of months, n*m, with Principal & Interest (P&I) repayments : 300

Interest rate, jm, p.a (compounding monthly) : 8%

Interet rate per month (i=jm/m) : 8%/12 Loan amount : $936,814

Calculate the following independent question with excel equation

Q1. Right after the interest-only period expires, the interest rate changes. You need to repay $1300 more each month-end to be able to fully repay the loan by the original date. Calculate the new interest rate p.a. compounded monthly."

Q2. Right after the interest-only period expires, you lose your job because of COVID-19. The bank agrees to a repayment freeze term of 6 months during which you do not make any repayment. To be able to repay your loan by the original date, you will need to increase the month-end repayment after the repayment freeze term. Calculate the amount of the increased month-end repayment."

Q3. Right after the interest-only period expires, the bank extends the interest-only period by another 10 months without changing the length of the loan term (You still need to fully repay the loan by the original date). Recalculate the amount of month-end repayment you should make when the extended interest-only periold expires. "