Elkford Logging's bank will fix the interest rate on a $60,000 loan at 8.1% compounded monthly for the first four years. After four years, the interest rate will be fixed at the prevailing five-year rate. Monthly payments of $800 (except for a smaller final payment) are required on the loan.
a) If the interest rate after four years is 7.5% compounded monthly, when will the loan be paid off?
b) What will be the amount of the final payment?
c) What is the interest portion of the thirty-second payment?
d) Calculate the principal portion of the fifty-eighth payment.

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The Answer of Elkford Logging's bank will fix the interest rate on a $60,000 loan at 8.1% compounded monthly for the first four years. After four years, the interest rate will be fixed at the prevailing five-year rate. Monthly payments of $800 (except for a smaller final payment) are required on the loan.
a) If the interest rate after four years is 7.5% compounded monthly, when will the loan be paid off?
b) What will be the amount of the final payment?
c) What is the interest portion of the thirty-second payment?
d) Calculate the principal portion of the fifty-eighth payment.

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