You are considering taking out a loan of $10,000.00 that will be paid back over 9 years with monthly payments of $116.1 4. If the interest rate is 5.2% compounded monthly, what would the unpaid balance be immediately after the ninth payment? The unpaid balance would be what?

You are considering taking out a loan of $10,000.00 that will be paid back over 9 years with monthly payments of $116.1 4. If the interest rate is 5.2% compounded monthly, what would the unpaid balance be immediately after the ninth payment? The unpaid balance would be what?

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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You are considering taking out a loan of $10,000.00 that will be paid back over 9 years with monthly payments of $116.1
4. If the interest rate is 5.2% compounded monthly, what would the unpaid balance be immediately after the ninth
payment? The unpaid balance would be what?

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