Ali took a loan of 180000 to buy an apartment the bank offered the loan with an apr of 16 compounded monthly payable in 30 annual instalment where A=31,280. For the 8th instalment, how much of that payment went towards paying off the principal amount?

Ali took a loan of 180000 to buy an apartment the bank offered the loan with an apr of 16 compounded monthly payable in 30 annual instalment where A=31,280. For the 8th instalment, how much of that payment went towards paying off the principal amount?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 18P

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Concept explainers

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

Ali took a loan of 180000 to buy an
apartment the bank offered the loan with
an apr of 16 compounded monthly payable
in 30 annual instalment where A=31,280.
For the 8th instalment, how much of that
payment went towards paying off the
principal amount?

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