✔ StudyForce.com
✔ Biology-Forums.com
✔ Ask questions here: Biology-Forums.com/Ask
In many situations, unexpected events can disrupt a borrower's ability to make timely loan payments. Whether missing a mortgage payment or facing unexpected medical expenses, loan terms may need adjustment.
Q. Mario took out a $20,000 loan to buy a car with an annual interest rate of 6%, compounded monthly, and amortized over 5 years with monthly payments. After 20 timely payments, he became ill and missed the next 5 payments. The bank permitted him to resume payments without extending the original loan term. Given these conditions, what will his new monthly payment amount be?