A loan is being repaid by 2n level payments (with the first payment 1 period after the

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A loan is being repaid by 2n level payments (with the first payment 1 period after the start of the loan) at an effective interest rate of j per period.Just after the nth payment, the outstanding balance on the loan is 3/4 of the initial outstanding balance on the loan.

a) Find v_jⁿ. (when having a ordinary annuity annuity formula is a_n|j=1-vⁿ/j but in this question we forget about j so we have a_n|=1-vⁿ)

b) What is the ratio of interest to principal reduction in the n+1^stpayment? (i.e I_n+1/PR_n+1)

Posted Date: Jun 07, 2024 10:06 AM

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A loan is being repaid by 2n level payments (with the first payment 1 period after the

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