A loan is being amortized by means of level monthly payments at an annual effective interest...

Question

Question

A loan is being amortized by means of level monthly payments at an annual effective interest rate of 8%. The amount of princi

business finance

Answer 1

Answer #1

Option D

Loan Principal=1312604.856

Number of months=12*30=360
Annual rate compounded monthly=((1+8%)^(1/12)-1)*12=7.721%
Monthly payment=9377.22

Loan Amortization Schedule

Answer 2

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