Question
A loan is to be repaid in level installments payable at the end of each year for seven years. The effective annual interest rate on
A loan is to be repaid in level installments payable at the end of each year for seven years. The effective annual interest rate on the loan is 5%. After the 4th payment the principal remaining is $5,000. Which of the following is closest to the amount of the loan?
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$10,625
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$10,675
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$10,725
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$10,775
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$10,825
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Personal Finance
Authors: McGraw Hill
Student Edition
0078958393, 978-0078958397
