The Johnson family bought a quad and were able to finance it with a simple interest loan for 36months at 11% interest. They are going to pay the loan off 3 months early. The balance after 33months is $1,400. Find the amount of the final payment.

In simple interest there is no compounding of interest that means there is no interest on interest…

The Johnson family bought a quad and were able to finance it with a simple interest loan for months at 11% interest. They are going to pay the loan off 3 months early. The balance after 3 months is $1,400. Find the amount of the final payment.

The Johnson family bought a quad and were able to finance it with a simple interest loan for months at 11% interest. They are going to pay the loan off 3 months early. The balance after 3 months is $1,400. Find the amount of 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

Section: Chapter Questions

Problem 1PS

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