Find the monthly payment-the future value

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You are taking out a loan for $50,000

A. The term of the loan is 10 years, you will make monthly payments, and the interest rate is 4% annual compounded monthly. Find the monthly payment, the future value, and the annual effective rate.

B. It is expected that the average annual inflation rate will be 3% annual compounded monthly for the first 5 years and 5% annual compounded monthly for the last 5 years. Find the annual payments in year 0 constant dollars for each part of the loan and find the future value in year 0 constant dollars.

Reference no: EM131027015

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