A six-month loan of 20,000 at a nominal rate of 12% convertible monthly will be repaid with six monthly payments starting at the end of the first month. The first three payments are X each, and the final three payments are 3X each. Determine the value of X, the amount of principal repaid in the third payment, and the amount of interest paid in the fifth payment.

A six-month loan of 20,000 at a nominal rate of 12% convertible monthly will be repaid with six monthly payments starting at the end of the first month. The first three payments are X each, and the final three payments are 3X each. Determine the value of X, the amount of principal repaid in the third payment, and the amount of interest paid in the fifth payment.

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

See similar textbooks

Similar questions

If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?
Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600
A loan of $1,000 at a nominal rate of 12% convertible monthly is to be repaid by 6 monthly payments withthe first payment due at the end of one month. The first three payments are 2X each, and the final threepayments are X each. Determine(a) The principal repaid in the third payment;(b) The interest paid in the fifth paymen
A loan of 1000 at a nominal rate of 12 percent convertible monthly is to be repaid by six monthly payments with the first payment due at the end of 1 month. The first three payments are x each, and the final three payments are 3x each. Determine the sum of the principal repaid in the third payment and the interest paid in the fifth payment. Without using excel please
A loan of 200000€ will be repaid with %12 nominal interest. convertible over 3 months. the debt is planmed to be repaid in 72 months, with payments at the end each month. find the monthly payment amount