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loan of size A is to be amortized by monthly payments of $1000. The rate of...

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Finance

loan of size A is to be amortized by monthly payments of $1000.The rate of interest on the loan is j 12 = 18%. The outstandingbalance immediately after the 4 th monthly payment is $12,000. Howmuch principal is repaid in the 12 th monthly payment?

$914.50

$923.72

$910.07

$896.62

Answer & Explanation Solved by verified expert
4.4 Ratings (795 Votes)

$910.07

Month Opening Repayment Interest Principal Closing
4    12,000.00
5        12,000.00          1,000.00              180.00              820.00    11,180.00
6        11,180.00          1,000.00              167.70              832.30    10,347.70
7        10,347.70          1,000.00              155.22              844.78      9,502.92
8          9,502.92          1,000.00              142.54              857.46      8,645.46
9          8,645.46          1,000.00              129.68              870.32      7,775.14
10          7,775.14          1,000.00              116.63              883.37      6,891.77
11          6,891.77          1,000.00              103.38              896.62      5,995.14
12          5,995.14          1,000.00                89.93              910.07      5,085.07

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Transcribed Image Text

loan of size A is to be amortized by monthly payments of $1000.The rate of interest on the loan is j 12 = 18%. The outstandingbalance immediately after the 4 th monthly payment is $12,000. Howmuch principal is repaid in the 12 th monthly payment?$914.50$923.72$910.07$896.62

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