Asked by Blaze Roque on Apr 24, 2024
A $10,000 loan made on January 1 at 7%, is to be repaid by payments of $3,500 on July 1, $3,500 on October 1, and a final payment on January 1 of the next year. What is the amount of the final payment required to pay off the loan in full?
Final Payment
The last payment made on a loan, debt, or financing agreement, completing the repayment obligation.
Interest Rate
The percentage charged on a loan or paid on deposits over a specific period.
- Learn the basic frameworks for loan calculations and the methodologies for repayment.
- Determine the final payment required to settle a loan in different scenarios.
- Recognize the significance of interest rates in shaping the worth of money and the payment intervals over duration.
Learning Objectives
- Learn the basic frameworks for loan calculations and the methodologies for repayment.
- Determine the final payment required to settle a loan in different scenarios.
- Recognize the significance of interest rates in shaping the worth of money and the payment intervals over duration.