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  3. 1(a). imagine that you have secured a $40,000 loan

1(a). Imagine that you have secured a $40,000 loan from a bank, which is to...

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Finance

1(a). Imagine that you have secured a $40,000 loan from a bank, which is to be repaid over a-5 year period; what will be your monthly payment at the start of each month if the bank charges an interest rate of 4%? (5 Points)

(b) What will be the value of your interest and principal payments from the start of the first year of payments to the end of the second year? (5 Points)

(c) Using the same interest rate and time above, what would have been the future value of the annual payments if they had been inflows instead? (5 points)

NB: Loans are present value inflows though Excel recognizes them as outflows.

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