You have taken alone of $500000 lone over 12years at 6% intrest rate compounded monthly, which is rembursed with montly payment. What is the principal portion of the 23rd payment.Choose correct alternative from given image QUESTION 8You have taken a loan of $500,000 loan over 12 years at a 0% interest rate compounded monthly, which is rembursed with monthly payments What is the principalportion of the 73rd payment?Oa2,314 18Ob 3,407 19Oc440 86Od 2074 74

Loans are paid equal monthly installments and these installments carry the payment for interest and…

QUESTION 8 You have taken a loan of $500,000 loan over 12 years at a 0% interest rate compounded monthly, which is rembursed with monthly payments What is the principal portion of the 73rd payment? O&2,314 18 Ob 3,407 19 Oc4496 O4207474

QUESTION 8 You have taken a loan of $500,000 loan over 12 years at a 0% interest rate compounded monthly, which is rembursed with monthly payments What is the principal portion of the 73rd payment? O&2,314 18 Ob 3,407 19 Oc4496 O4207474

PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)

6th Edition

ISBN:9781337117005

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter7: Using Consumer Loans

Section: Chapter Questions

Problem 9FPE

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Concept explainers

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.

Question

You have taken alone of $500000 lone over 12years at 6% intrest rate compounded monthly, which is rembursed with montly payment. What is the principal portion of the 23rd payment.

Choose correct alternative from given image

QUESTION 8
You have taken a loan of $500,000 loan over 12 years at a 0% interest rate compounded monthly, which is rembursed with monthly payments What is the principal
portion of the 73rd payment?
Oa2,314 18
Ob 3,407 19
Oc440 86
Od 2074 74

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