Raymond borrowed $3,000.00 from Loans R Us Company. The line of credit agreement provided for repayment of the loan in equal monthly payments of $668.76 which includes interest of 9.00 % per annum calculated on the unpaid balance.  a.       What is the monthly rate of interest? b.       Calculate the outstanding loan balance at the end of the third payment  c.       What are the total interest charges?  d.       How many payments are required to pay off the loan e.       What is the final Payment

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Raymond borrowed $3,000.00 from Loans R Us Company. The line of credit agreement provided for repayment of the loan in equal monthly payments of $668.76 which includes interest of 9.00 % per annum calculated on the unpaid balance. 

a.       What is the monthly rate of interest?

b.       Calculate the outstanding loan balance at the end of the third payment 

c.       What are the total interest charges? 

d.       How many payments are required to pay off the loan

e.       What is the final Payment 

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