Question 1118845
the monthly payments on the loan to you from the bank are equal to $3,126.153065.


the total payments you made are equal to 24 times that = $75,027.67355.


the total interest you paid is equal to that minus the original loan amount of $70,000 = $5,027.67355.


when you deposit $70,000 in the bank for 2 years at 6.75% per year compounded monthly, the future value of that amount will be $80,087.27459.


the interest earned is that minus the original amount you invested of $70,000 = $10,087.27459.


i used the TI-BA-II financial calculator to get these results.


to calculate what the monthly payment would be, the inputs were:


present value = 70,000.
future value = 0.
interest rate per month = 6.75/12.
number of months = 2 * 12.
payments are made at the end of each month.


i then had the calculator give me the monthly payment.


to calculate what the future value of the 70,000 deposit into the bank would be, the inputs were:


present value = 70,000.
payment per month = 0.
interest rate per time period = 6.75/12.
number of time periods = 2 * 12.


i then had the calculator give me the future value.