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Ron's Loan: Ron borrows $3,000,000 to purchase a warehouse. The annual interest rate on the loan...

Ron's Loan: Ron borrows $3,000,000 to purchase a warehouse. The annual interest rate on the loan is 8.25 percent, and the term of the loan is 15 years. The loan requires the borrower to pay two discount points at the time of origination.

A) What is the monthly payment necessary to amortize this loan?

B) What is the balance on the loan at the end of month 36?

C) How much interest will Ron pay in month 37?   

D) How much principal will Ron pay in the fourth year of this loan (payments 37 through 48)?

Solutions

Expert Solution

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

jeff jeffy answered 4 months ago
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