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Loan Monthly Payment Assignment | Homework For You

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May 26th, 2020

A borrower has a $90000 loan with the “Easy-Credit” Finance Company. The loan is to be repaid over 12 years via monthly payments at 7.4%/year compounded monthly. Just after the 36th payment, the borrower learns that his local bank would lend him money at 5.4%/year compounded monthly. Assuming that the contract stipulates an early repayment penalty equal to 3 months’ interest on the outstanding balance at the time of refinancing, what would be the new monthly payment?Get Finance homework help todayHomework For You

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