– In order to solve this problem the information is given regarding the total monthly loan payment ,the interest rate is given the outstanding loan balance is given and the time period is unknown. We can find that by using a financial calculator and total time period for the loan is 30 years.
– Total Time Period is 20 years in case 1 and 25 years in the case 2. Now assuming monthly compounding 20 years is equal to 240 months and 25 years is equal to 300 months. Since the interest rate is 5.75% annually the