Dawson borrows $75,000 for three years from the bank to purchase a sailboat. This is an amortized loan with equal payments each month. The loan is fully paid off with the final payment. The quoted interest rate (APR) is 9% per year with monthly compounding. Assuming you make all of your payments on time:
a) What is the outstanding balance on the loan right after you have made your 30th payment?
b) What portion of the 31st payment is principal?