Using the Loan Amortization Chart Follow the instructions in the NET @ssets box at the beginning of Section 14.1 for accessing and using the Loan Amortization Chart in this textbook's Online Learning Centre (OLC). Use this chart and its associated report to solve:
Ms. Esperanto obtained a $40,000 home equity loan at 7.5% compounded monthly.
a) What will she pay monthly if the amortization period is 15 years?
b) How much of the payment made at the end of the fifth year will go towards principal and how much will go towards interest?
c) What will be the balance on the loan after five years?
d) How much interest did she pay during the fifth year?

Question

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The Answer of Using the Loan Amortization Chart Follow the instructions in the NET @ssets box at the beginning of Section 14.1 for accessing and using the Loan Amortization Chart in this textbook's Online Learning Centre (OLC). Use this chart and its associated report to solve:
Ms. Esperanto obtained a $40,000 home equity loan at 7.5% compounded monthly.
a) What will she pay monthly if the amortization period is 15 years?
b) How much of the payment made at the end of the fifth year will go towards principal and how much will go towards interest?
c) What will be the balance on the loan after five years?
d) How much interest did she pay during the fifth year?

Using the Loan Amortization Chart Follow the Instructions in the NET