Question

A company borrowed $140,000 a an interest rate o 8% o be repaid over a per od of 6 years. The loan will be repaid n n 140,000). What is the size of the last payment (X) required to pay off the loan? a ments acco din to the cash flow, dia am o n e ow which als reflects e cash flow or 140,000 $10,000$20,000 $20,000X $20,000 $20,000

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X=140000*1.08^6-20000*1.08^5-20000*1.08^4-10000*1.08^3-20000*1.08^2-20000*1.08^1=108040.9445

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