7 15 pts The Browns secured at bank loan of 210000 to help f

7. (15 pts) The Browns secured at bank loan of $210,000 to help finance the purchase of a house. The bank charges interest at a rate of 4.5%/year on the unpaid balance, And interest computations arc /mule at the end of each month. the Browns have agreed to repay the loan in equal monthly Installments over 31) years. What should be the size of each repayment if the loan is to be amortized at the end of the term? (Round your answer to the nearest cent,)

Solution

Bank loan 210000 @4.5%

Interest calculated monthly at month end

Tenure = 30 years

EMI =?

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EMI =1074 per month

Total interest payble = 176656/-

Principal = 210000/-

Total payment = 386,656/-