A loan is taken out at /12 = 18% and is paid back with monthly payments of $279.00, plus a smaller concluding payment. Withone month left on the loan, the outstanding balance is $268.66. What is the size of the final loan payment?$279.00$264.63$270.69$268.66$272.69

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

Answered: A loan is taken out at j12 = 18% and is…

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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A loan is taken out at j12 = 18% and is paid back with monthly payments of $279.00, plus a smaller concluding payment. With one month left on the loan, the outstanding balance is $268.66. What is the size of the final loan payment? $279.00 $264.63 $270.69 $268.66 $272.69