22. Loan Payments. If you take out an $8,000 car loan that calls for 48 monthly payments at an
APR of 10 percent, what is your monthly payment? What is the effective annual interest rate on
the loan? (Use the excel PMT function)
37. Amortizing Loan. You take out a 30-year $100,000 mortgage loan with an APR of 6 percent
and monthly payments. In 12 years you decide to sell your house and pay off the mortgage.
What is the principal balance on the loan?
This posting gives a detailed solution to the problem posted by the student.