Math Problem Solver

Compare the total amount of interest that would be paid on a $50 000loan over a 10-year period, if the annual nominal rate of interest is 12%compounded monthly, under the following three repayment schemes:Method A: The entire loan plus accumulated interest is paid in one lump-sumat the end of 10 years.Method B: Interest is paid at the end of each year as accrued and the principalis repaid at the end of 10 years.Method C: The loan is repaid by 120 level payments over 10-years, in whichcase the first payment is effected one month after the loan ismade.