Suppose you are paying off a $1,200 loan by paying $400 in principal repayment each year plus 10% yearly interest over a 3-year period. What is the total payment (interest plus principal) in the third year? Multiple choice question. $800 $400 $1,320 $440

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
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 6FPE
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Suppose you are paying off a $1,200 loan by paying $400 in principal repayment each year plus 10% yearly interest over a 3-year period. What is the total payment (interest plus principal) in the third year?

Multiple choice question.

$800

$400

$1,320

$440

 

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