2. 9 pts) A loan of $20,000 is being paid by regular payments of $1,000 at...
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2. 9 pts) A loan of $20,000 is being paid by regular payments of $1,000 at the end of cach six-month period and a smaller final payment (drop payment) made half a year after the last regular payment. The interest rate for the loan is a nominal interest rate of 6% convertible semiannually. (a) Find the number of regular payments. (b) Find the amount of the final payment. (c) Find the outstanding loan balance immediately after the the 5th payment. 2. 9 pts) A loan of $20,000 is being paid by regular payments of $1,000 at the end of cach six-month period and a smaller final payment (drop payment) made half a year after the last regular payment. The interest rate for the loan is a nominal interest rate of 6% convertible semiannually. (a) Find the number of regular payments. (b) Find the amount of the final payment. (c) Find the outstanding loan balance immediately after the the 5th payment.
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As the periodic payments are made at the end of each semiannual period all data must be expressed as ... View the full answer
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