Question: Alexander takes out a 6-year loan that he repays using the amortization method. He makes monthly payments at a nominal annual interest rate of 6%

Alexander takes out a 6-year loan that he repays using the amortization method. He makes monthly payments at a nominal annual interest rate of 6% compounded monthly. The first payment is $700 and is to be paid one month from the date of the loan. Each succeeding monthly payment will be 1% lower than the prior payment. Calculate the outstanding loan balance after the 48th payment.

Question Alexander takes out a 6-year loan that he repays using the amortization method. He makes monthly payments at a nominal annual interest rate of 6% compounded monthly. The first payment is $700 and is to be paid one month from the date of the loan. Each succeeding monthly payment will be 1% lower than the prior payment. Calculate the outstanding loan balance after the 48th payment. Possible Answers 4975 B 8727 8741 D 8771 E 15,794

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

1. What problem is VTL trying to solve? How does VTL solve this problem? 2. What accounts for VTLs early and quite substantial success? 3. Identify the central lessons of the Sacramento experience,...

1)Emily takes out a 4-year loan that she repays using the amortization method. She makes monthly payments at a nominal annual interest rate of 6% compounded monthly. The first payment is $60 and is...

Jenna takes out a 3-year loan that she repays using the amortization method. She makes monthly payments at a nominal annual interest rate of 6% compounded monthly. The first payment is $100 and is to...

Go! Problem b of 25 GOAL 02:27:10 Question Salma takes out a 3-year loan that she repays using the amortization method. She makes monthly payments at a nominal annual interest rate of 6% compounded...

(1 point) Problem 4 - Varying Payments and Equal Principal Repaid Brandi takes out a 3-year loan that she repays using the amortization method. She makes monthly payments at a nominal annual interest...

Sue takes out a 3-year loan that she repays using the amortization method. She makes monthly payments at a nominal annual interest rate of 4.8% compounded monthly. The first payment is $50 and is to...

Please i need help. Sue takes out a 3-year loan that she repays using the amortization method. She makes monthly payments at a nominal annual interest rate of 4.8% compounded monthly. The first...

please explain by steps. thank you a. A 100,000 loan is being repaid using the amortization method with level monthly payments for 10 years. The nominal loan interest rate is j% compounded monthly....

With specific solution, thanks 1. Marc graduates with $10,000 in debt, on which he must make monthly payments. The annual interest rate is 6.6% (compounded monthly), and he must be finished repaying...

1) The market for short-term debt is known as A) the money market. C) the notes market. B) the bond market. D) the capital market. 1) 2) A commercial bank will loan you $7,500 for two years to buy a...

Richard Epstein, a University of Chicago law professor, said in his book Takings that the principles of nuisance illustrate more clearly than any other doctrine how our property-based legal system...

Refer to the Billys Bank situation in Problem 12-24. Billy is considering adding a second teller (who would work at the same rate as the first) to reduce the waiting time for customers, and he...

Enterprise computing refers to the use of technology by _ _ _ _ _ _ . Option A small business owners to connect multiple locations using a network Option B astronauts and aerospace engineers to plan...

Parker Company acquires an 80% interest in Sargent Company for $300,000 in cash on January 1, 2015, when Sargent Company has the following balance sheet: The excess of the price paid over book value...

Mira Mesa Appliances makes and sells kitchen equipment for offices and hotel rooms. Mira Mesa management believes that a new model of refrigerator made out of a synthetic material would sell well at...

The Gale Company has the following inventory and purchases during the fiscal year ended December 31, 2014. Required: 1. Calculate the dollar value of ending inventory and cost of goods sold using: a....

As discussed in the chapter, deferred taxes in the United Kingdom have historically been computed in a slightly different manner than in the United States. The concept underlying this crystallisation...

Sids Skins makes a variety of covers for electronic organizers and portable music players. The companys designers have discovered a market for a new clear plastic covering with college logos for a...

Rachael is an HR Coordinator at SoundTech Inc. She is now in charge of the job analysis process in her organization and is currently planning how she will do it . What would generally be her next...

Who should be in charge of orienting new employees at the Jungle Gym? Why? Jason was excited about his first day of work at Jimmys Jungle Gym. As a second-year kinesiology student, this job would...

What possible legal liabilities is the company facing? Why? Jason was excited about his first day of work at Jimmys Jungle Gym. As a second-year kinesiology student, this job would provide Jason with...

In groups of 3-or 4, prepare a new student orientation program for your campus. How long would the orientation program be, and who would be involved? What would be included before, during, and after...