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The following table shows the monthly loan payments for a loan of various interest rates and times for repayment. The amounts shown have been calculated assuming a principal of \$1,000. In the sortable table below, click on the column title to organize the table by that column's values. Monthly Loan Payments for each$1000 of Principal

Rate 1 year 2 years 3 years 4 years 5 years 10 years
4.00% \$85.15 \$ 43.42 \$29.52 \$ 22.58 \$18.42 \$ 10.12
4.25% \$85.26 \$ 43.54 \$29.64 \$ 22.69 \$18.53 \$ 10.24
4.50% \$85.38 \$ 43.65 \$29.75 \$ 22.80 \$18.64 \$ 10.36
4.75% \$85.49 \$ 43.76 \$29.86 \$ 22.92 \$18.76 \$ 10.48
5.00% \$85.61 \$ 43.87 \$29.97 \$ 23.03 \$18.87 \$ 10.61
5.25% \$85.72 \$ 43.98 \$30.08 \$ 23.14 \$18.99 \$ 10.73
5.50% \$85.84 \$ 44.10 \$30.20 \$ 23.26 \$19.10 \$ 10.85
5.75% \$85.95 \$ 44.21 \$30.31 \$ 23.37 \$19.22 \$ 10.98
6.00% \$86.07 \$ 44.32 \$30.42 \$ 23.49 \$19.33 \$ 11.10
6.25% \$86.18 \$ 44.43 \$30.54 \$ 23.60 \$19.45 \$ 11.23
6.50% \$86.30 \$ 44.55 \$30.65 \$ 23.71 \$19.57 \$ 11.35
6.75% \$86.41 \$ 44.66 \$30.76 \$ 23.83 \$19.68 \$ 11.48
7.00% \$86.53 \$ 44.77 \$30.88 \$ 23.95 \$19.80 \$ 11.61
7.25% \$86.64 \$ 44.89 \$30.99 \$ 24.06 \$19.92 \$ 11.74
7.50% \$86.76 \$ 45.00 \$31.11 \$ 24.18 \$20.04 \$ 11.87
7.75% \$86.87 \$ 45.11 \$31.22 \$ 24.30 \$20.16 \$ 12.00
8.00% \$86.99 \$ 45.23 \$31.34 \$ 24.41 \$20.28 \$ 12.13
8.25% \$87.10 \$ 45.34 \$31.45 \$ 24.53 \$20.40 \$ 12.27
8.50% \$87.22 \$ 45.46 \$31.57 \$ 24.65 \$20.52 \$ 12.40
8.75% \$87.34 \$ 45.57 \$31.68 \$ 24.77 \$20.64 \$ 12.53
9.00% \$87.45 \$ 45.68 \$31.80 \$ 24.89 \$20.76 \$ 12.67
9.25% \$87.57 \$ 45.80 \$31.92 \$ 25.00 \$20.88 \$ 12.80
9.50% \$87.68 \$ 45.91 \$32.03 \$ 25.12 \$21.00 \$ 12.94
9.75% \$87.80 \$ 46.03 \$32.15 \$ 25.24 \$21.12 \$ 13.08
10.00% \$87.92 \$ 46.14 \$32.27 \$ 25.36 \$21.25 \$ 13.22
10.25% \$88.03 \$ 46.26 \$32.38 \$ 25.48 \$21.37 \$ 13.35
10.50% \$88.15 \$ 46.38 \$32.50 \$ 25.60 \$21.49 \$ 13.49
10.75% \$88.27 \$ 46.49 \$32.62 \$ 25.72 \$21.62 \$ 13.63
11.00% \$88.38 \$ 46.61 \$32.74 \$ 25.85 \$21.74 \$ 13.78
11.25% \$88.50 \$ 46.72 \$32.86 \$ 25.97 \$21.87 \$ 13.92
11.50% \$88.62 \$ 46.84 \$32.98 \$ 26.09 \$21.99 \$ 14.06
11.75% \$88.73 \$ 46.96 \$33.10 \$ 26.21 \$22.12 \$ 14.20
12.00% \$88.85 \$ 47.07 \$33.21 \$ 26.33 \$22.24 \$ 14.35
12.25% \$88.97 \$ 47.19 \$33.33 \$ 26.46 \$22.37 \$ 14.49
12.50% \$89.08 \$ 47.31 \$33.45 \$ 26.58 \$22.50 \$ 14.64
12.75% \$89.20 \$ 47.42 \$33.57 \$ 26.70 \$22.63 \$14.78

Decide whether the following statements are true or false.

True

False

Compare the total interest paid on a 2 year loan at 5.25% to a 10 year loan at 5.25%. The total interest paid on the 10 year loan will be more than five times as great as the total interest paid on the 2 year loan.

The total interest paid on a 5 year loan at 11.00% for a principal of $43,000 will be greater than one-third of the principal. There exists the possibility on this table of finding a rate and time combination for which the total interest will equal the principal. The monthly payment for a 7 ½ year loan at 4.00% interest would appear to be$14.27.

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