Question
A 20 year loan is being repaid with 20 annual non-level (end-of-year) payments. The first (11) payment is $2,500. The second payment is $2,400. The
A 20 year loan is being repaid with 20 annual non-level (end-of-year) payments. The first (11) payment is $2,500. The second payment is $2,400. The payments continue to decrease until the last payment of $600 is paid. The interest rate on the loan is an annual effective rate of 6%.
(a) Determine the outstanding loan balance at time t = 10 years (right after the 10th payment).
(b) Determine the principal in the 11th payment.
*PLEASE NO EXCEL! ONLY FORMULAS!*
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Personal Finance A Practical Approach
Authors: Jane King, Mary Carey
1st Edition
0199668833, 9780199668830
