What amount of equal end of period payments (known as a payment in arrears) is required to completely pay off a current...
What amount of equal end of period payments (known as a payment in arrears) is required to completely pay off a current loan balance amount of 26,000 if the interest rate applied is 5.0% and the desire is to finish payments 17 periods from now?
Homework Answers
PV = $ 26000
i = 5% and t = 17
Equal end of period payment = Y
26000 = Y/(1 + 5%) + Y/(1 + 5%)2 +..... + Y/(1 + 5%)17
Y = 2306.2
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