A loan of $40,000 is to be amortized in 12 level annual payments. The interest rate for the first 4 years is 4%, the interest rate for the next 4 years (years 5 to 8) is 5%, while the interest rate for the last 4 years of the loan is 6%. Calculate the loan balance after the 6th payment.

Answer rating: 100% (QA)

PV Loan Amount 40000 n1 4 years Let P Annual payment r1 Interest rate 4 r2 Interest rate 5 r3 Intere... View the full answer