Consider a loan of 800,000 which is to be amortized by 60 monthly payments. The interest rate is 12% converted monthly. 1. How much is the outstanding balance after the 36th payment? 2. How much of the 37th payment goes to pay the interest the principal?
Consider a loan of 800,000 which is to be amortized by 60 monthly payments. The interest rate is 12% converted monthly. 1. How much is the outstanding balance after the 36th payment? 2. How much of the 37th payment goes to pay the interest the principal?
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
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![Consider a loan of 800,000 which is to be amortized by 60 monthly payments. The interest rate
is 12% converted monthly.
1. How much is the outstanding balance after the 36th payment?
2. How much of the 37th payment goes to pay the interest the principal?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff78efa87-28ac-4aa1-b97d-2fb28d1bdde5%2Fe045cb8f-3f49-4a95-8650-b44d1db11630%2F4mi477_processed.png&w=3840&q=75)
Transcribed Image Text:Consider a loan of 800,000 which is to be amortized by 60 monthly payments. The interest rate
is 12% converted monthly.
1. How much is the outstanding balance after the 36th payment?
2. How much of the 37th payment goes to pay the interest the principal?
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