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 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?

Ms Esperanto Obtained a $40,000 Home Equity Loan at 7