In: Finance
1. Monthly payment = Loan amount / present value Annuity factor(0.07/12,20*12)
i = Interest rate per month = 0.07/12 = 0.583%
Total payment periods = n = 20 years * 12 months = 240
Monthly payment = 600000 * i / [ 1 - (1+r)^-n]
Monthly payment = 600000 * 0.583% / [ 1 - (1.00583)^-240]
Monthly payment = 600000 * 0.583% / [ 1 - 0.24760]
Monthly payment = $4649.18 (approx)
2.
Cumulative principal paid = $29579.25
Loan balance after 2 years = 600000 - 29579.25 = 570420.75
3. Interest amount in payment 25 = $3327.45
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