A loan of 18000 dollars is to be repaid in annual installments of 2200 dollars, the first due in one year, followed by a final smaller payment. If the effective rate of interest is 9 percent, what is the outstanding balance owed immediately after the 5th payment?
Homework Answers
Calculating balance after 5 years,
Using TVM Calculation,
FV = [PV = 18,000, PMT = -2,200, I = 0.09, N = 5]
FV = $14,528.87
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A loan of 18000 dollars is to be repaid in annual installments
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