A 30-year mortgage at 4.2 % interest compounded monthly with a monthly payment of $1095.24 has an unpaid balance of $10,000 after 350 months. Find the unpaid balance after 351 months. 2. A car manufacturer is offering the choice of a 0.6 % loan compounded monthly for 72 months or $800 cash back on the purchase of a $18,500 new car. If a car buyer takes the 0.5 % loan offer, how much will his monthly payment be? If the car buyer takes the $2400 cash-back offer and can borrow money from a local bank at 13 % interest compounded monthly for eight years, how much will the monthly payment be?

Q: Explain which is the better option.

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Loans

A loan is a term that we are all familiar with. The processing of loans is one of the most important functions of a bank. It keeps our economy stable and facilitates the implementation of monetary policies. Let's take a look at the different forms of loans and get some answers to some common questions.