XYZ Company will get a $50,000 loan from a bank for a new investment. The annual...

 

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XYZ Company will get a $50,000 loan from a bank for a new investment. The annual payment calculated by the bank for 35 years is $3,053 with an interest rate of %5 per year. The company decides that it can afford to pay $3,500 per year. In this case, the loan will be paid off in 26 years instead of 35 years. However, (due to the effect of rounding in interest calculations) the exact amount of the 26 payment will be less than $3,500. Determine the amount of the 26th (final) payment on the $50,000 loan when 25 payments of $3,500 have already been made. The interest rate remains at %5 per year. XYZ Company will get a $50,000 loan from a bank for a new investment. The annual payment calculated by the bank for 35 years is $3,053 with an interest rate of %5 per year. The company decides that it can afford to pay $3,500 per year. In this case, the loan will be paid off in 26 years instead of 35 years. However, (due to the effect of rounding in interest calculations) the exact amount of the 26 payment will be less than $3,500. Determine the amount of the 26th (final) payment on the $50,000 loan when 25 payments of $3,500 have already been made. The interest rate remains at %5 per year.