# a. What will be the monthly payment on a 30-year, \$250,000 mortgage loan, where the interest rate is 6% per year, compounded monthly? How much interest is paid over the life of the loan? b. What will be the monthly payment on a 30-year, \$250,000 mortgage loan, where the interest rate is 6% per year, compounded continuously? How much interest is paid over the life of the loan? c. What will be the monthly payment on a 15-year, \$250,000 mortgage loan, where the interest rate is 6% per year, compounded monthly? How much interest is paid over the life of the loan?

Question
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a. What will be the monthly payment on a 30-year, \$250,000 mortgage loan, where the interest rate is 6% per year, compounded monthly? How much interest is paid over the life of the loan?

b. What will be the monthly payment on a 30-year, \$250,000 mortgage loan, where the interest rate is 6% per year, compounded continuously? How much interest is paid over the life of the loan?

c. What will be the monthly payment on a 15-year, \$250,000 mortgage loan, where the interest rate is 6% per year, compounded monthly? How much interest is paid over the life of the loan?
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Step 1

Calculation of Monthly Payment and Interest Paid on the Loan:

Step 2

Excel Workings:

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