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Ralph has just borrowed $1420 to purchase a new stereo, at a nominal rate of interest...

Ralph has just borrowed $1420 to purchase a new stereo, at a nominal rate of interest of 11.4% convertible monthly. Although he is charged interest from the moment he borrows the money, the first payment is not due for 11 months. If he will make 24 monthly payments, how much interest is in the 17th payment?

Answer = $ (3 decimal place)

Solutions

Expert Solution

Initial Amount      1,420.00
Rate 11.40%
Amount after 11 months      1,590.53
No. of payments 24
Monthly payments            74.43
S.No P EMI Interest
1    1,590.535       74.427         15.110
2    1,531.218       74.427         14.547
3    1,471.337       74.427         13.978
4    1,410.888       74.427         13.403
5    1,349.864       74.427         12.824
6    1,288.261       74.427         12.238
7    1,226.072       74.427         11.648
8    1,163.293       74.427         11.051
9    1,099.917       74.427         10.449
10    1,035.939       74.427            9.841
11       971.353       74.427            9.228
12       906.154       74.427            8.608
13       840.335       74.427            7.983
14       773.891       74.427            7.352
15       706.816       74.427            6.715
16       639.104       74.427            6.071
17       570.748       74.427            5.422
18       501.743       74.427            4.767
19       432.083       74.427            4.105
20       361.760       74.427            3.437
21       290.770       74.427            2.762
22       219.105       74.427            2.081
23       146.760       74.427            1.394
24          73.727       74.427            0.700

jeff jeffy answered 1 year ago
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