Consider a $15,000 loan with interest at 12% compounded monthly and 24 monthly payments. How...
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Consider a $15,000 loan with interest at 12% compounded monthly and 24 monthly payments. How much will the (constant) loan payment be? Set up the payment schedule for the first four months, indicating the amount and timing of principal and interest payments respectively.
This constant payment could be decomposed to payment towards interest and payment towards principal as follows (remember the principal is decreasing since some of it being paid each month):
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