Loan Calculation: Effective Interest Rate, Monthly Payment, Outstanding Balance and Loan Payback Per

Effective Annual Interest Rate Calculation with Monthly Compounding

John  took a  loan  of  $50,000 from  a  bank  at  a  nominal  interest  rate  of  6%  per  year  compounded monthly.  The loan is to be repaid with 48 equal end-of-month payments.(a)What is the effective annual interest rate of the loan?   (1 mark) (b)How much does John need to pay to the bank at the end of every month?(2 marks)(c)John has just made the 18th monthly payment.  How much does he still owe the bank?(2 marks)(d)John  has  just  made  the  18th  monthly  payment.    Suppose  that  he  has  just  been  recently  promoted  in  his  job  and  he  wishes  to  fully  settle  the  loan  with just another  12 more  equal  monthly payments.  How much is the new monthly payment assuming that there is no change in the interest rate charged by the bank?(2 marks)(d)Mary  also  takes a  loan  of  $50,000  from  the  bank.    Because  Mary  can  only  afford  to  pay  at most only  $1,113  per  month,  so  the  bank  charges  her  higher  interests  at  12%  per  yearcompounded monthly.  How many months does Mary need to pay back the loan?