Smith borrows $5,000 on August 1, 2017 at a nominal annual rate of interest of 12%...

Smith borrows $5,000 on August 1, 2017 at a nominal annual rate of interest of 12% compounded monthly. Smith agrees to make payments of $800 per month with a first payment on September 1, 2017 and a final payment of less than $800.

In which of the following ranges is the amount of the final payment?

A 363.20

B 385.50

C 389.90

D 392.60

E 1185.50

Solutions

Expert Solution

Ans is C. 389.90PLEASE UPVOTE IF THE SOLUTION IS HELPFUL.THANKS.

jeff jeffy answered 1 year ago

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