Problem #3: A loan of amount $19316.84 is repaid in 15 annual payments beginning 1 year after the loan is made. The first 6 payments are $1100 each, and the final 9 payments are each $2200. Interest is at an effective annual rate of 3.6%. What is the amount of the principal repayment in the 6th payment?

Problem #3: A loan of amount $19316.84 is repaid in 15 annual payments beginning 1 year after the loan is made. The first 6 payments are $1100 each, and the final 9 payments are each $2200. Interest is at an effective annual rate of 3.6%. What is the amount of the principal repayment in the 6th payment?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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