Show that an amortized loan amount n at interest rate i per period can be repaid...

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Show that an amortized loan amount n at interest rate i per period can be repaid by the series of n geometrically increasing payments K₁ = (1 + i ), K₂ = (1 + i)², ..., Kn = (1 + i)”, with the first payment made one period after the loan. Show that the outstanding balance at time t = B₁ = (n − t)(1 + i)t Show that an amortized loan amount n at interest rate i per period can be repaid by the series of n geometrically increasing payments K₁ = (1 + i ), K₂ = (1 + i)², ..., Kn = (1 + i)”, with the first payment made one period after the loan. Show that the outstanding balance at time t = B₁ = (n − t)(1 + i)t

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Sure lets break down the amortized loan repayment and the outstanding balance at time t For an amort... View the full answer