Ask Question
30 October, 01:54

A borrower takes out an interest-only loan at 6% for $1,000,000 with a 10 year term. What is the monthly payment on this loan? (State your answer as a positive number, rounded to two decimal places.)

+3
Answers (1)
  1. 30 October, 01:56
    0
    The answer is $500

    Explanation:

    a: 1,000,000 the amount of the loan

    r: 0.06 (6% expressed as 0.06)

    n: 120 (based on monthly payments * 10 years)

    monthly payment = (amount * r) / 12

    monthly payment = ($1,000,000 * 0.06) / 120 = $500
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A borrower takes out an interest-only loan at 6% for $1,000,000 with a 10 year term. What is the monthly payment on this loan? (State your ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers