Mary negotiates a loan of 300000 with a bank,which has to be repaid by means of monthly payments of 5000 and a final payment which is less than 5000.the repayments start one month after the granting of the loan.  Interest is fixed at 18% per annum, compounded monthly.  1.determine the number of payments required to settle the loan  2. Calculate the value of the final payment made by Mary to settle the loan 3. Calculate the total amount that Mary repaid to the bank

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
icon
Related questions
Question

Mary negotiates a loan of 300000 with a bank,which has to be repaid by means of monthly payments of 5000 and a final payment which is less than 5000.the repayments start one month after the granting of the loan.  Interest is fixed at 18% per annum, compounded monthly. 

1.determine the number of payments required to settle the loan 

2. Calculate the value of the final payment made by Mary to settle the loan

3. Calculate the total amount that Mary repaid to the bank

Expert Solution
steps

Step by step

Solved in 4 steps with 4 images

Blurred answer
Recommended textbooks for you
Advanced Engineering Mathematics
Advanced Engineering Mathematics
Advanced Math
ISBN:
9780470458365
Author:
Erwin Kreyszig
Publisher:
Wiley, John & Sons, Incorporated
Numerical Methods for Engineers
Numerical Methods for Engineers
Advanced Math
ISBN:
9780073397924
Author:
Steven C. Chapra Dr., Raymond P. Canale
Publisher:
McGraw-Hill Education
Introductory Mathematics for Engineering Applicat…
Introductory Mathematics for Engineering Applicat…
Advanced Math
ISBN:
9781118141809
Author:
Nathan Klingbeil
Publisher:
WILEY
Mathematics For Machine Technology
Mathematics For Machine Technology
Advanced Math
ISBN:
9781337798310
Author:
Peterson, John.
Publisher:
Cengage Learning,
Basic Technical Mathematics
Basic Technical Mathematics
Advanced Math
ISBN:
9780134437705
Author:
Washington
Publisher:
PEARSON
Topology
Topology
Advanced Math
ISBN:
9780134689517
Author:
Munkres, James R.
Publisher:
Pearson,