A loan is set to be paid with a payment of $625 today and $250 in 18 months at 1.95% interest compounded monthly. Due to insufficient funds, the payments are refinanced. A first payment of $500 will be made in 9 months and a final payment in 24 months. What is the size of the final payment? Use the partial timeline below to help you. today 9 mo 18 mo 24 mo $625 $500 $250
A loan is set to be paid with a payment of $625 today and $250 in 18 months at 1.95% interest compounded monthly. Due to insufficient funds, the payments are refinanced. A first payment of $500 will be made in 9 months and a final payment in 24 months. What is the size of the final payment? Use the partial timeline below to help you. today 9 mo 18 mo 24 mo $625 $500 $250
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
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