has a loan with an effective annual interest rate of 4%. He makes payments at the end of each year for 11 years. The first payment is 100, and each subsequent payment increases by 10 per year. Calculate the interest portion in his 5th payment. A) 39.82 B) 40.44 C) 41.25 D) 49.25 E) 43.72
has a loan with an effective annual interest rate of 4%. He makes payments at the end of each year for 11 years. The first payment is 100, and each subsequent payment increases by 10 per year. Calculate the interest portion in his 5th payment. A) 39.82 B) 40.44 C) 41.25 D) 49.25 E) 43.72
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 25PROB
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Jee has a loan with an effective annual interest rate of 4%. He makes payments at the end of each year for 11 years. The first payment is 100, and each subsequent payment increases by 10 per year. Calculate the interest portion in his 5th payment.
A) 39.82
B) 40.44
C) 41.25
D) 49.25
E) 43.72
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