The amount that will remain to be paid? Suppose that $12,000 is borrowed now at 12% interestper year. A partial repayment of $4,000 is made fiveyears from now. The amount that will remain to be paidthen is most nearly:A. $10,287.96B. $12,247.68C. $17,147.60D. $16,389.24

We can solve this step by step using the compound interest formula. Given Data:Principal (P) =…

Answered: Suppose that $12,000 is borrowed now at…

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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Suppose that $12,000 is borrowed now at 12% interest per year. A partial repayment of $4,000 is made five years from now. The amount that will remain to be paid then is most nearly: A. $10,287.96 B. $12,247.68 C. $17,147.60 D. $16,389.24