How much interest is paid in the 53rd monthly payment interval of a loan for $43...

Question

Question

How much interest is paid in the 53rd monthly payment interval of a loan for $43 200? The loan is amortized at a rate of 9.17

business finance

Answer 1

Answer #1

Loan	43200
Period	7
Compounding	Monthly
Rate	9.17%

Excel formula for calculating interest payment	Monthly payment
=IPMT(9.17%/12,53,7*12,-43200,0,0)	151.08

If compounding happens monthly interest payment at 53rd interval would be $ 151.08, But in our case compounding happens annually so interest would bit lesser than 151.08 and option d. $144.11 is close monthly compounding hence answer would be d. $144.11

Answer 2

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