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ABC Bank sanctions a loan application for a 25 year mortage loan for US100,000. The interest...

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Finance

ABC Bank sanctions a loan application for a 25 year mortage loanfor US100,000. The interest rate on the loan is 12% per annum andthe borrower is required to make equal monthly payments to repaythe loan in 25 years. If the market interest rate goes down to 10%per annum, what will the loan be worth? (Answer up to twodecimal places,

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Loan 100000 Initial interest rate 12 per annum Period ofloan 25 years 25 x 12 months 300 monthsInitial monthly rate Initial interest rate 12 1212 1per monthFirst we will need to find the equal    See Answer
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ABC Bank sanctions a loan application for a 25 year mortage loanfor US100,000. The interest rate on the loan is 12% per annum andthe borrower is required to make equal monthly payments to repaythe loan in 25 years. If the market interest rate goes down to 10%per annum, what will the loan be worth? (Answer up to twodecimal places,

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