Elkford Logging's bank will fix the interest rate on a $60,000 loan at 4.2% compounded monthly for the first four-year term of an eight-year amortization period. Monthly payments are required on the loan.
a) If the prevailing interest rate on four-year loans at the beginning of the second term is 6% compounded monthly, what will be the monthly payments for the last four years?
b) What will be the interest portion of the twenty-third payment?
c) Calculate the principal portion of the fifty-third payment

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The Answer of Elkford Logging's bank will fix the interest rate on a $60,000 loan at 4.2% compounded monthly for the first four-year term of an eight-year amortization period. Monthly payments are required on the loan.
a) If the prevailing interest rate on four-year loans at the beginning of the second term is 6% compounded monthly, what will be the monthly payments for the last four years?
b) What will be the interest portion of the twenty-third payment?
c) Calculate the principal portion of the fifty-third payment

Elkford Logging's Bank Will Fix the Interest Rate on a $60,000