Question

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 = $

Answer 1

	Amount	1,420
	Interest	11.40%
	Interest Per Month	0.95%
Month	Opening	Interest	Principal	Installment	Closing
1	1,420	-	-	-	1,420
2	1,420	-	-	-	1,420
3	1,420	-	-	-	1,420
4	1,420	-	-	-	1,420
5	1,420	-	-	-	1,420
6	1,420	-	-	-	1,420
7	1,420	-	-	-	1,420
8	1,420	-	-	-	1,420
9	1,420	-	-	-	1,420
10	1,420	-	-	-	1,420
11	1,420	-	-	-	1,420
12	1,420	162	-89	73.33	1,509
13	1,509	14	59	73.33	1,450
14	1,450	14	60	73.33	1,390
15	1,390	13	60	73.33	1,330
16	1,330	13	61	73.33	1,269
17	1,269	12	61	73.33	1,208
18	1,208	11	62	73.33	1,146
19	1,146	11	62	73.33	1,084
20	1,084	10	63	73.33	1,021
21	1,021	10	64	73.33	957
22	957	9	64	73.33	893
23	893	8	65	73.33	828
24	828	8	65	73.33	762
25	762	7	66	73.33	696
26	696	7	67	73.33	630
27	630	6	67	73.33	562
28	562	5	68	73.33	494
29	494	5	69	73.33	426
30	426	4	69	73.33	356
31	356	3	70	73.33	286
32	286	3	71	73.33	216
33	216	2	71	73.33	144
34	144	1	72	73.33	73
35	73	1	73	73.33	-0
Note: Interest payment at the 17th month is USD 5.34