2. You have been approved for a $72,000 4-year loan earning 10.8% compounded monthly. (a) What are your monthly payments? (b) Create an amortization schedule for the first two payments made. (c) What is your unpaid balance after 2 years of payments have been paid?

2. You have been approved for a $72,000 4-year loan earning 10.8% compounded monthly. (a) What are your monthly payments? (b) Create an amortization schedule for the first two payments made. (c) What is your unpaid balance after 2 years of payments have been paid?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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Math 2

2. You have been approved for a $72,000 4-year loan earning 10.8% compounded monthly.
(a) What are your monthly payments?
(b) Create an amortization schedule for the first two payments made.
(c) What is your unpaid balance after 2 years of payments have been paid?

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