A $16000 loan is to repaid by monthly payments of $340, the first payment is due in one year's time. IfJ12 = 9.9%, determine the number of regular monthly payments and the size of the final smaller payment.a)Number of payments: 59b)Final smaller payment: $

Repayment of loan is made in fixed instalments for during the loan period which include part of…

A $16000 loan is to repaid by monthly payments of $340, the first payment is due in one year's time. If ji2 = 9.9%, determine the number of regular monthly payments and the size of the final smaller payment. a)Number of payments: 59 b)Final smaller payment: $

A $16000 loan is to repaid by monthly payments of $340, the first payment is due in one year's time. If ji2 = 9.9%, determine the number of regular monthly payments and the size of the final smaller payment. a)Number of payments: 59 b)Final smaller payment: $

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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Question

A $16000 loan is to repaid by monthly payments of $340, the first payment is due in one year's time. If
J12 = 9.9%, determine the number of regular monthly payments and the size of the final smaller payment.
a)Number of payments: 59
b)Final smaller payment: $

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