loan of size A is to be amortized by monthly payments of $1000. The rate of...

loan of size A is to be amortized by monthly payments of $1000. The rate of interest on the loan is j 12 = 18%. The outstanding balance immediately after the 4 th monthly payment is $12,000. How much principal is repaid in the 12 th monthly payment?

$914.50

$923.72

$910.07

$896.62

Expert Solution

$910.07

Month	Opening	Repayment	Interest	Principal	Closing
4					12,000.00
5	12,000.00	1,000.00	180.00	820.00	11,180.00
6	11,180.00	1,000.00	167.70	832.30	10,347.70
7	10,347.70	1,000.00	155.22	844.78	9,502.92
8	9,502.92	1,000.00	142.54	857.46	8,645.46
9	8,645.46	1,000.00	129.68	870.32	7,775.14
10	7,775.14	1,000.00	116.63	883.37	6,891.77
11	6,891.77	1,000.00	103.38	896.62	5,995.14
12	5,995.14	1,000.00	89.93	910.07	5,085.07

jeff jeffy answered 4 months ago

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