A customer repays a loan of 22,000 that has an annual effective interest rate of 5.15% by making payments of 2,200 at the end of each year for 11 years, followed by payments of 1,000 at the end of each year for as long as necessary, until A final payment of X of less than 1,000, made one year after the last regular payment of 1,000, repays the loan. Find X.
A customer repays a loan of 22,000 that has an annual effective interest rate of 5.15% by making payments of 2,200 at the end of each year for 11 years, followed by payments of 1,000 at the end of each year for as long as necessary, until A final payment of X of less than 1,000, made one year after the last regular payment of 1,000, repays the loan. Find X.
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
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Transcribed Image Text:A customer repays a loan of 22,000 that has an annual effective interest rate of
5.15% by making payments of 2,200 at the end of each year for 11 years, followed
by payments of 1,000 at the end of each year for as long as necessary, until A final
payment of X of less than 1,000, made one year after the last regular payment of
1,000, repays the loan. Find X.
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