8. A loan of $10,000 is repaid using the amortization method with payments at the end of each year for 12 years at an annual interest rate of 5%. To the nearest dollar, find the principal repaid in the 9th payment. A. $ 200 B. $537 C. $764 D. $915 E. $928

8. A loan of $10,000 is repaid using the amortization method with payments at the end of each year for 12 years at an annual interest rate of 5%. To the nearest dollar, find the principal repaid in the 9th payment. A. $ 200 B. $537 C. $764 D. $915 E. $928

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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Question

8. A loan of $10,000 is repaid using the amortization method with payments at the end of
each year for 12 years at an annual interest rate of 5%. To the nearest dollar, find the
principal repaid in the 9th payment.
A. $ 200
B. $537
C. $ 764
D. $915
E. $928

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