An $80,000 business loan is to be repaid in 10 years by month-end repayments. The...
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An $80,000 business loan is to be repaid in 10 years by month-end repayments. The first repayment is made at the end of the first month. The interest rate is 6% p.a. compounded monthly. a) Calculate the monthly repayment for the loan to be paid off on time. Round your answer to the nearest cent. (2 marks) b) Calculate the loan outstanding balance at the end of year 6 using the prospective method. Round your answer to the nearest cent. (3 marks) c) Calculate the total principal paid in the 7th year. Round your answer to the nearest cent. (3 marks) d) Calculate the total interest paid in the 7th year. Round your answer to the nearest cent. (2 marks)
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