Question: 5) A loan is being repaid by 2n level payments (with the first payment 1 period after the start of the loan) at an effective

5) A loan is being repaid by 2n level payments (with

5) A loan is being repaid by 2n level payments (with the first payment 1 period after the start of the loan) at an effective interest rate of j per period. Just after the nth payment, the outstanding balance on the loan is 3/4 of the initial outstanding balance on the loan. a) Find vin b) What is the ratio of interest to principal reduction in the n+1st payment? (i.e In+1/PRn+1) 5) A loan is being repaid by 2n level payments (with the first payment 1 period after the start of the loan) at an effective interest rate of j per period. Just after the nth payment, the outstanding balance on the loan is 3/4 of the initial outstanding balance on the loan. a) Find vin b) What is the ratio of interest to principal reduction in the n+1st payment? (i.e In+1/PRn+1)

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