Alexander takes out a 6-year loan that he repays using the amortization method. He makes monthly payments at a nominal annual interest rate of 6% compounded monthly. The first payment is $700 and is to be paid one month from the date of the loan. Each succeeding monthly payment will be 1% lower than the prior payment. Calculate the outstanding loan balance after the 48th payment.

Question Alexander takes out a 6-year loan that he repays using the amortization method. He makes monthly payments at a nominal annual interest rate of 6% compounded monthly. The first payment is $700 and is to be paid one month from the date of the loan. Each succeeding monthly payment will be 1% lower than the prior payment. Calculate the outstanding loan balance after the 48th payment. Possible Answers 4975 B 8727 8741 D 8771 E 15,794