A declining-balance loan for $3000 entails paying about $275.00 for each of twelve months, for a total of about $3300 in payments. The loan's interest rate is 18% per year. How much of the loan's second payment goes to paying interest? O $41.55 O $40.88 O $45 $36.75
A declining-balance loan for $3000 entails paying about $275.00 for each of twelve months, for a total of about $3300 in payments. The loan's interest rate is 18% per year. How much of the loan's second payment goes to paying interest? O $41.55 O $40.88 O $45 $36.75
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 14P
Related questions
Question
Explain well with proper step by step Answer.
![A declining-balance loan for $3000 entails paying about $275.00 for each of twelve months,
for a total of about $3300 in payments. The loan's interest rate is 18% per year. How much
of the loan's second payment goes to paying interest?
$41.55
O $40.88
O $45
O $36.75
O $42.58](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3583e15c-d82b-4a70-8500-25b358cf0244%2Feaa20bcf-81dd-4c30-a62d-d4d72f4f3d3a%2Feq15ptq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A declining-balance loan for $3000 entails paying about $275.00 for each of twelve months,
for a total of about $3300 in payments. The loan's interest rate is 18% per year. How much
of the loan's second payment goes to paying interest?
$41.55
O $40.88
O $45
O $36.75
O $42.58
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 2 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![EBK CONTEMPORARY FINANCIAL MANAGEMENT](https://www.bartleby.com/isbn_cover_images/9781337514835/9781337514835_smallCoverImage.jpg)
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
![Pfin (with Mindtap, 1 Term Printed Access Card) (…](https://www.bartleby.com/isbn_cover_images/9780357033609/9780357033609_smallCoverImage.jpg)
Pfin (with Mindtap, 1 Term Printed Access Card) (…
Finance
ISBN:
9780357033609
Author:
Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:
Cengage Learning
![EBK CONTEMPORARY FINANCIAL MANAGEMENT](https://www.bartleby.com/isbn_cover_images/9781337514835/9781337514835_smallCoverImage.jpg)
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
![Pfin (with Mindtap, 1 Term Printed Access Card) (…](https://www.bartleby.com/isbn_cover_images/9780357033609/9780357033609_smallCoverImage.jpg)
Pfin (with Mindtap, 1 Term Printed Access Card) (…
Finance
ISBN:
9780357033609
Author:
Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:
Cengage Learning
![Intermediate Financial Management (MindTap Course…](https://www.bartleby.com/isbn_cover_images/9781337395083/9781337395083_smallCoverImage.gif)
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning