Question

Madelyn has a loan to be repaid by 16 annual payments at an effective annual interest rate of 5%. Payments 1-10 are $600 each, payments 11-14 are $380 each, and the last 2 payments are $570 each.

The interest portion in Madelyn's 13 th payment is?

(I have already posted this question and they got 21.95%, which is incorrect!)

Answer 1

Interest portion is 83.40

Payment	Loan beginning balance	Payment	Interest payment	Principal payment	Loan ending balance
1	5995.568555	$600.00	$299.78	$300.22	$5,695.35
2	$5,695.35	$600.00	$284.77	$315.23	$5,380.11
3	$5,380.11	$600.00	$269.01	$330.99	$5,049.12
4	$5,049.12	$600.00	$252.46	$347.54	$4,701.58
5	$4,701.58	$600.00	$235.08	$364.92	$4,336.65
6	$4,336.65	$600.00	$216.83	$383.17	$3,953.49
7	$3,953.49	$600.00	$197.67	$402.33	$3,551.16
8	$3,551.16	$600.00	$177.56	$422.44	$3,128.72
9	$3,128.72	$600.00	$156.44	$443.56	$2,685.16
10	$2,685.16	$600.00	$134.26	$465.74	$2,219.41
11	$2,219.41	$380.00	$110.97	$269.03	$1,950.38
12	$1,950.38	$380.00	$97.52	$282.48	$1,667.90
13	$1,667.90	$380.00	$83.40	$296.60	$1,371.30
14	$1,371.30	$380.00	$68.56	$311.44	$1,059.86
15	$1,059.86	$570.00	$52.99	$517.01	$542.86
16	$542.86	$570.00	$27.14	$542.86	$0.00