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: 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.…

A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…

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Q: Find the monthly payment for the loan indicated. (Round your final answer to two decimal places.)…

A: Formula to calculate EMI:  EMI= (P X R/12) X [(1+R/12) ^N] / [(1+R/12) ^N-1] Wherein:  P = Loan…

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A: Loan amortization refers to the systematic and regular repayment of the loan amount and its interest…

Q: Determine the amount of money in a savings account at the end of 5 years, given an initial deposit…

A: Compounding: It is the practice by which the interest is credited both to an existing principal…

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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.