Question

You find that a small business loan in the amount of 50,000 isthe amount you need to purchase the restaurant location. Afterresearching banks to find the best interest rate, you find thatbanks for small businesses offer the best interest rate of 9%interest that compounds monthly for 7 years.
What is the monthly payment for this loan?

1. You find that a small business loan in the amount of 50,000is the amount you need to purchase the restaurant location. Afterresearching banks to find the best interest rate, you find thatbanks for small businesses offer the best interest rate of 9%interest that compounds monthly for 7 years.

a. What is the monthly payment for this loan?
b. Show the formula that you used and the values used for eachvariable to calculate the monthly payment.
c. What is the unpaid balance of the loan at the end of the 1styear?
d. Show the formula that you used and the values used for eachvariable to calculate the unpaid balance at the end of the 1styear.
e. What is the unpaid balance at the end of the 6th year? Show theformula that you used and the values used for each variable tocalculate the unpaid balance at the end of the 6thyear.