Question
LaRon borrowed $20,000 with a promise to repay the loan in 6 years with uniform monthly payments at a nominal interest rate of 12% per
LaRon borrowed $20,000 with a promise to repay the loan in 6 years with uniform monthly payments at a nominal interest rate of 12% per year compounded monthly. (a) What is the amount of interest he paid in the 2nd payment? (b) What will be the loan balance immediately after the 20th payment? That is, if LaRon wants to pay off the loan what would be the size of the check he would write (remaining balance of the loan)?
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Basic Economics
Authors: Frank V. Mastrianna
16th edition
1111826641, 978-0357706664, 978-1111826642
