A loan is being paid off by payments of 1,000, 2,000, ..., 10,000 at the end of years 1, 2, ..., 10. The effective annual interest rate is 18%. Determine the amount of interest in the 7th payment.

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A: Calculation of Effective Interest Rate:The effective interest rate is 8.16%.Excel Spreadsheet:

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A: Here, To Find: Interest and principal portion of the payment =?

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A: Annual interest rate j12 = 18% (i.e compounding monthly)henceMonthly interest rate = 18% / 12 =…

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Q: Given the annual interest rate and a line of an amortization schedule for that​ loan, complete the…

A: Annual interest rate = 5.4% Monthly interest rate = 5.4%/12 = 0.45% Closing balance = $ 4,464.20…

Q: .Consider a $10,000 loan to be repaid in equal installments at the end of each of the next 5 years.…

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Q: installment loan at 18%. The final payment is to be made on $238.42 principal.what is the final…

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A: Interest payment for the 3rd year = $1080 ($30000-$6000-$6000)*6% = $1080

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A: Principal Amount = p = $185,000 Time = t = 2 years Interest amount = i = $24,050

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Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.