Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A $1,000 loan is being repaid in installments of $100 at the end of each year for a certain number of years, with a smaller
A $1,000 loan is being repaid in installments of $100 at the end of each year for a certain number of years, with a smaller final payment one year after the last $100 installment. Interest is at an effective annual rate of 2%. In which of the following ranges is the amount of principal included in the sixth installment?
< $83
B
$83 but < $85
C
$85 but < $87
D
$87 but < $89
E
$89
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started