Answered

Welcome to Westonci.ca, your ultimate destination for finding answers to a wide range of questions from experts. Join our platform to get reliable answers to your questions from a knowledgeable community of experts. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.

A bank customer borrows X at an annual effective rate of 12.5% and makes level payments at the end of each year for n years.(which fully repays the loan).

i. The interest portion of the final payment is 142.78.
ii. The total principal repaid as of time (n − 1) is 6009.12.
iii. The principal repaid in the first payment is Y .

Calculate Y

Sagot :

Tundexi

Answer:

Y = $391.10

Explanation:

We have 0.125B(n-1) = i

B(n-1) = In = 142.78

So that B(n-1) = 142.78/0.125 = 1142.24

Furthermore, B(n-1) = Px = Pv = P/(1+0.125) = 1142.24

P/1.125 = 1142.24

P = 1142.24*1.125

P = 1285.02.

The total amount of the loan = Principal repaid as of time (n-1) + Principal repaid in last payment

= 6009.12 + 1142.24

= 7151.36

So, the total amount of the loan is 7151.36.

The principal repaid in the first payment Y = 1285.02 - 0.125*7151.36

Y = 1285.02 - 893.92

Y = $391.10

We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. We appreciate your time. Please revisit us for more reliable answers to any questions you may have. Find reliable answers at Westonci.ca. Visit us again for the latest updates and expert advice.