Suppose you are borrowing $25,000 and making monthly payments with 1% interest. Show that the monthly payments
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Suppose you are borrowing $25,000 and making monthly payments with 1% interest. Show that the monthly payments should equal $556.11. The key relationships are that for any month t
(Ending month t balance) = (Ending month t – 1 balance) – ((Monthly payment) – (Month t interest))
(Month t interest) = (Beginning month t balance) × (Monthly interest rate)
Of course, the ending month 60 balance must equal 0.
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Related Book For
Practical Management Science
ISBN: 978-1305250901
5th edition
Authors: Wayne L. Winston, Christian Albright
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