financial math regarding amortized loans

(6) Letr and k denote positive integers, and set n = rk. An amortized loan lasting n interest periods has a payment of P at the end of each k interest periods. The effective interest rate per interest period is i. (a) Explain why the outstanding loan balance at time jk, just after the payment of P is equal to p.je 0.1.2..... } [HINT: Look at Section (4.2).] (b) Use the result of (a) to establish that the interest in the payment at time (j + 1)k is P(1 - M-)). (6) Letr and k denote positive integers, and set n = rk. An amortized loan lasting n interest periods has a payment of P at the end of each k interest periods. The effective interest rate per interest period is i. (a) Explain why the outstanding loan balance at time jk, just after the payment of P is equal to p.je 0.1.2..... } [HINT: Look at Section (4.2).] (b) Use the result of (a) to establish that the interest in the payment at time (j + 1)k is P(1 - M-))