Mortgage loan-how much is the effective annual rate

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We receive a mortgage loan for 20 years.. The mortgage rate is 6% per annum. Additionally, the monthly payment we ought to make to the bank to amortize the loan is $2, 500. Secondly, compute the remaining amount we still owe the bank, if we pay an additional single sum of $50,000 after 5 years. Thirdly, as part of this computation, find how many more months, we will pay the bank to induce the loan expire. Fourthly, if we accumulate a lot by year 10(end of the year), how much would we give additionally to the lender to eliminate the loan? Fifthly, how much is the effective annual rate? **Show your work

Reference no: EM13849688

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