Asked by Jonathan Catano on May 13, 2024
Verified
A $5,000 loan made on March 15 at an interest rate of 7.5%, is to be repaid by payments of $2,000 on June 15, $2,000 on October 15, and a final payment on December 15. What is the amount of the final payment required to pay off the loan in full?
Final Payment
The last payment made to settle the balance of a financial obligation.
Interest Rate
The rate at which borrowers are charged interest for the use of funds they have loaned from a lender.
- Acquire knowledge of the basic tenets of loan calculations and approaches to repayment.
- Ascertain the concluding remuneration needed to liquidate a loan under various circumstances.
- Comprehend the effect of interest rates on the value of money and payments over time.
Verified Answer
BD
Learning Objectives
- Acquire knowledge of the basic tenets of loan calculations and approaches to repayment.
- Ascertain the concluding remuneration needed to liquidate a loan under various circumstances.
- Comprehend the effect of interest rates on the value of money and payments over time.