Michael and Lynn Sullivan have a ten-year-old loan for $181,900 with which they purchased their...
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Michael and Lynn Sullivan have a ten-year-old loan for $181,900 with which they purchased their house. They just sold their highly profitable import-export business and are considering paying off their home loan. Their loan is a thirty-year simple interest amortized loan at 10.5% interest and has no prepayment penalty. (Round your answers to the nearest cent.)
(a) Find their monthly payment. (b) Find the unpaid balance of the loan. $ (c) Find the amount of interest they will save by prepaying. $ (d) The Sullivans decided that if they paid off their loan, they would deposit the equivalent of half their monthly payment into an annuity. If the ordinary annuity pays 9% interest, find its future value after 20 years. $ (e) The Sullivans decided that if they do not pay off their loan, they would deposit an amount equivalent to their unpaid balance into an account that pays 9 3/4% interest compounded monthly. Find the future value of this account after 20 years.
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