Asked by
Law of Fashion Clark
on Dec 02, 2024
Verified
You have borrowed $130,000 to buy a new motor home. Your loan is to be repaid over 15 years at 8% compounded monthly Calculate the principal paid to the bank in month 2 of the loan.
A) $242.67
B) $378.19
C) $413.61
D) $581.25
Compounded Monthly
Interest calculation method where the interest amount is added to the principal sum so that the next interest calculation includes interest upon interest.
Principal Paid
The portion of a loan payment that goes toward reducing the original amount borrowed, distinct from interest or other fees.
- Pinpoint and investigate the fiscal costs and gains of entering into loan agreements, along with determining the aggregate interest paid across the loan's lifespan.
Verified Answer
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Learning Objectives
- Pinpoint and investigate the fiscal costs and gains of entering into loan agreements, along with determining the aggregate interest paid across the loan's lifespan.