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What monthly payment is required to amortize
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Parts (a) and (b) are not directly related. Each part should be solved independently. Show your work.
(a) If a $100 is deposited at the end of each month in a savings account earning interest at the rate of 3.5% per year compounded monthly, how much will be in the savings account at the end of 15 years, assuming that no withdrawals are made during that period?
(b) What monthly payment is required to amortize (or pay off) a loan of $50,000 over 10 years if interest at the rate of 4% is charged on the unpaid balance and interest calculations are made at the end of each month?
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