A restaurant manager has the option of a 30-year loan of $415,000 at an annual interest rate of 3.85% or the same interest rate but on a loan for 15 years. (a) Calculate the monthly payment for each loan. (Round your answers to the nearest cent.) 30-year $? 15-year $? (b) Calculate the savings in interest by using the 15-year loan. (Round your answer to the nearest cent.)

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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.