You take out a loan for 10000. You pay off the loan with monthly payments of...

You take out a loan for 10000. You pay off the loan with monthly payments of 90 for 10

years.

(a) What is the monthly effective rate? What is the annual effective rate?

(b) What is the outstanding loan balance immediately after the 7th payment? Calculate

using both the retrospective and prospective formulas.

actuarial science

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jeff jeffy answered 1 year ago

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