Economy A student borrowed $5,000, which she will repay in 30 equal monthly installments. After the...

Economy

A student borrowed $5,000, which she will repay in 30 equal monthly installments. After the 25th payment she desires to pay the remainder of the loan in a single payment, at 15% interest compounded monthly, what is the amount of the payment? please answer in detail and includde cash flow diagram

Solutions

Expert Solution

Amount of payment = $1004.46

Calculation and cash flow diagram is shown below:

Formulas are: Instalment = PMT(rate/12,no.of months, principal)

Interest = Loan amount*rate of interest

Rahul Sunny answered 1 year ago

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