Suppose that $15,000 is borrowed now at 12% interest per year. A partial repayment of $5,000 is made five years from now. The amount that will remain to be paid then is most nearly: A. $10,000 B. $21,400 C. $ 21,434.50 D. $26,400

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
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Suppose that $15,000 is borrowed now at 12% interest per year. A partial
repayment of $5,000 is made five years from now. The amount that will
remain to be paid then is most nearly:
A. $10,000
B. $21,400
C. $ 21,434.50
D. $26,400
Transcribed Image Text:Suppose that $15,000 is borrowed now at 12% interest per year. A partial repayment of $5,000 is made five years from now. The amount that will remain to be paid then is most nearly: A. $10,000 B. $21,400 C. $ 21,434.50 D. $26,400
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