A $50,000 interest-only mortgage loan is made for 30 years at a nominal interest rate of 6 percent. Interest is to be accrued daily, but payments are to be made monthly. Assume 30 days each month.
a. What will the monthly payments be on such a loan?
b. What will the loan balance be at the end of 30 years?
c. What is the effective annual rate on this loan?