(Answered) Assume the followingloan amount100000interest rate10

Accounting

Assume the following:

Loan Amount:	$100,000
Interest rate:	10 percent annually
Term:	15 years, monthly payments

a. What is the monthly payment?

b. What will be the loan balance at the end of nine years?

c. What is the effective borrowing cost on the loan if the lender charges 3 points at origination and the loan goes to maturity?

d. What is the effective borrowing cost on the loan if the lender charges 3 points at origination and the loan is prepaid at the end of year 9?

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