A 15-year loan is to be repaid with payments at the end of each month, starting...
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A 15-year loan is to be repaid with payments at the end of each month, starting one month after the loan. Each of the first 20 payments equals the amount of interest due and the remaining payments are of amount K each. The effective annual interest rate is 12.68% and the outstanding balance just after the 10th payment is 100000. Assume that the borrower makes an additional payment of 6000 at the time of the 55th payment and the regular payments of K each continue as usual from time 56 onward for as long as necessary, plus a final smaller payment made one month after the last regular payment. Calculate K, the number of regular payments and the final smaller payment. A 15-year loan is to be repaid with payments at the end of each month, starting one month after the loan. Each of the first 20 payments equals the amount of interest due and the remaining payments are of amount K each. The effective annual interest rate is 12.68% and the outstanding balance just after the 10th payment is 100000. Assume that the borrower makes an additional payment of 6000 at the time of the 55th payment and the regular payments of K each continue as usual from time 56 onward for as long as necessary, plus a final smaller payment made one month after the last regular payment. Calculate K, the number of regular payments and the final smaller payment.
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Loan is a 15 year loan with repayments at end of each month starting 1 month after the loan Since each of the first 20 payments are equal to the interest due at those points in time each of these firs... View the full answer
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College Mathematics for Business Economics Life Sciences and Social Sciences
ISBN: 978-0321614001
12th edition
Authors: Raymond A. Barnett, Michael R. Ziegler, Karl E. Byleen
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