> Loan Question?

Loan Question?

Posted at: 2014-12-05 
18k

Tim takes out a loan of L and agrees to pay it back in equal size monthly payments over the next

25 years. Payments of size 500 are made at the end of each month and Tim is charged an annual

nominal rate of 12% compounded monthly.



Over the 25 years, how much interest in total does Tim end up paying back on the loan?