Felicia borrowed $25,000 at a nominal rate of 8% amortized over 5 years with monthly payments....

 

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Felicia borrowed $25,000 at a nominal rate of 8% amortized over 5 years with monthly payments. Felicia inherits $40,000 from her uncle and wants to pay off the loan in full after the 25th payment (assume the 25th payment was made). How much of Felicia's inheritance will be left after she pays off her loan? Solve by hand (BA II Plus use permitted). Felicia borrowed $25,000 at a nominal rate of 8% amortized over 5 years with monthly payments. Felicia inherits $40,000 from her uncle and wants to pay off the loan in full after the 25th payment (assume the 25th payment was made). How much of Felicia's inheritance will be left after she pays off her loan? Solve by hand (BA II Plus use permitted).

Answer rating: 100% (QA)

To calculate how much of Felicias inheritance will be left after she pays off her loan we can use th... View the full answer