1. Apple Bank makes a loan to Harry at 12.5 percent per year to be repaid bylevel annual payments for t years. Exactly one year before the loan is to beterminated, Harry notices that the decrease in outstanding loan balance sincehe took out the loan is 18,027.36. Harry's last payment contains 461.58 ininterest paid.a. Find the principal paid in the second payment.b. Find the total interest paid in the first three yearsc. Exactly what was the term of Harry's loan?d. Find OLB3

Given, Loan Amount = $18,027.36 Loan Interest rate = 12.5%

Answered: 1. Apple Bank makes a loan to Harry at…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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