Question
Joe borrowed $2500 at 4.5% compounded monthly. After one year he paid $1000 toward the outstanding balance. How much will Joe owe after three years?
Joe borrowed $2500 at 4.5% compounded monthly. After one year he paid $1000 toward the outstanding balance. How much will Joe owe after three years?
(Using Financial calculator method (BAII) by showing inputs within calculator)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To calculate the amount Joe will owe after three years we can use the formula for compound inter...
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Personal Finance
Authors: Thomas Garman, Raymond Forgue
12th edition
9781305176409, 1133595839, 1305176405, 978-1133595830
