A loan of 100,000 is payable over five years with monthly payments of 60,000 commencing one month

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A loan of 100,000 is payable over five years with monthly payments of 60,000 commencing one month after the inception date. The loan repayment is 2,000 per month and the nominal rate 10 per cent. How much capital remains at the end of five years?

The amount of principal paid on the loan is the PV of the monthly payments we make. So the present value of the $2,000 monthly payment is?

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Intermediate Accounting

ISBN: 978-1118300855

10th Canadian Edition Volume 2

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy

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Question Posted: Sep 19, 2013 03:00 AM

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A loan of 100,000 is payable over five years with monthly payments of 60,000 commencing one month

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Payment 2000 Years 60 Annual Rate 00083 PV 942180 The monthly ...View the full answer

Intermediate Accounting

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