4. Michelle received $6500 as a personal loan to be paid off in 3 years,...

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4. Michelle received $6500 as a personal loan to be paid off in 3 ½ years, but she has already made two payments: $1500 in a year, and $2250 in 2 ½ years. How much is left to be paid at the end of her term, if the interest on the loan is 12 ½ % compounded quarterly? Draw a timeline to illustrate your solution. 4. Michelle received $6500 as a personal loan to be paid off in 3 ½ years, but she has already made two payments: $1500 in a year, and $2250 in 2 ½ years. How much is left to be paid at the end of her term, if the interest on the loan is 12 ½ % compounded quarterly? Draw a timeline to illustrate your solution.

Answer rating: 100% (QA)

To calculate the remaining amount to be paid at the end of Michelles loan term we can use the formula for the future value of an ordinary annuity FV P ... View the full answer