A loan of 20,000 is to be repaid as follows. Payments of p are to be made at the end of each month for 96 months and a balloon payment of 5,400 is to be made at the end of the 96th month as well. If the nominal interest rate convertible monthly is 10%, what is the prinicipal componnent of the 19th payment?
A loan of 20,000 is to be repaid as follows. Payments of p are to be made at the end of each month for 96 months and a balloon payment of 5,400 is to be made at the end of the 96th month as well. If the nominal interest rate convertible monthly is 10%, what is the prinicipal componnent of the 19th payment?
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
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A loan of 20,000 is to be repaid as follows. Payments of p are to be made at the end of each month for 96 months and a balloon payment of 5,400 is to be made at the end of the 96th month as well. If the nominal interest rate convertible monthly is 10%, what is the prinicipal componnent of the 19th payment?
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