3. If you plan to purchase a home and your bank is ready to offer you a $200,000 mortgage loan for 10 years. The loan bears a compound annual interest rate of 24 percent (6% per quarter) and calls for equal quarterly installment payments at the end of each quarter for the next 10 years.
a) What is the amount of the quarterly payment that you have to pay the bank? (6 points)
b) Establish loan amortization schedules for the first 4 quarters only? (8 points)
c) What is the total amount that will be paid at the end of 10th year?(3 points)
d) What is the amount of total interest that will be paid after 10 years?(3 points)