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

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

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Question

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

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