Question: Please use the actuarial method and work the question using the formula in a step by step format. Jane Doe Ent. takes out a business

Please use the actuarial method and work the question using the formula in a step by step format.

Jane Doe Ent. takes out a business loan for $60,000 with a nominal annual interest rate of 12% compounded monthly. The loan is scheduled to be paid off with level monthly payments of $2000, plus a final drop payment. All payments will be made at the end of the month.

Calculate the drop payment.

(Completely unrelated to the question above but I would really appreciate the clarification. How would you calculate V²⁰_0.03? I mean since a_n\ican be found by (1-vⁿ)/i; what is the equivalent formula to find V²⁰_0.03?)

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