Question

A loan of $5000 is charged a 12% annual interest rate. An $80 payment is made...

  1. A loan of $5000 is charged a 12% annual interest rate. An $80 payment is made each month.
    1. a) Write a recurrence relation for the loan balance remaining at the beginning of month n.
    2. b) Solve the recurrence relation.
    3. c) How much is left of the loan balance at the beginning of the 19th month?
Math   Advanced-Math   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A $10000 loan has an interest rate of 12% per year, compounded monthly, and 30 equal...
A $10000 loan has an interest rate of 12% per year, compounded monthly, and 30 equal monthly payments are required. a) If payments begin at the end of the first month, what is the value of each payment? b) How much interest is in the 10th payment? c) What would you enter into Excel to solve part b? d) What is the unpaid balance immediately after the 10th payment? e) If the 30 loan payments are deferred and begin at...
Suppose you take out a loan of $ 20,000 now (n=0), with an annual interest rate...
Suppose you take out a loan of $ 20,000 now (n=0), with an annual interest rate of 12 % compounded monthly (LIP = one month). The loan has to be paid back in 12 end-of-month payments, with the first payment made one month from now. The monthly payment is $ 1,776.00. What is the interest payment included in the sixth payment ？
When you purchased your? car, you took out a? five-year annual-payment loan with an interest rate...
When you purchased your? car, you took out a? five-year annual-payment loan with an interest rate of 5.7% per year. The annual payment on the car is $4,900. You have just made a payment and have now decided to pay off the loan by repaying the outstanding balance. What is the payoff amount for the following? scenarios? a.You have owned the car for one year? (so there are four years left on the? loan)? b. You have owned the car...
When you purchased your​ car, you took out a​ five-year annual-payment loan with an interest rate...
When you purchased your​ car, you took out a​ five-year annual-payment loan with an interest rate of 5.9 % per year. The annual payment on the car is $ 5,100. You have just made a payment and have now decided to pay off the loan by repaying the outstanding balance. What is the payoff amount for the following​ scenarios? a. You have owned the car for one year​ (so there are four years left on the​ loan)? b. You have...
When you purchased your​ car, you took out a​ five-year annual-payment loan with an interest rate...
When you purchased your​ car, you took out a​ five-year annual-payment loan with an interest rate of 5.9% per year. The annual payment on the car is $4,800. You have just made a payment and have now decided to pay off the loan by repaying the outstanding balance. What is the payoff amount for the following​ scenarios? a. You have owned the car for one year​ (so there are four years left on the​ loan)? b. You have owned the...
When you purchased your​ car, you took out a​ five-year annual-payment loan with an interest rate...
When you purchased your​ car, you took out a​ five-year annual-payment loan with an interest rate of 5.9%per year. The annual payment on the car is $4,700. You have just made a payment and have now decided to pay off the loan by repaying the outstanding balance. What is the payoff amount for the following​ scenarios? a.You have owned the car for one year​ (so there are four years left on the​ loan)? b. You have owned the car for...
Mariam bought a condo for RM 600,000. She made a 10% down payment and financed the...
Mariam bought a condo for RM 600,000. She made a 10% down payment and financed the balance through a bank for 35 years. (a) If the interest rate was 7% compounded monthly, find the monthly payment that Mariam made to settle the loan. (b) How much was the total interest charged? (c) Suppose Mariam missed the first four payments. How much should be paid on the fifth month if she wanted to settle the outstanding arrears? (d) Immediately after paying...
The annual interest rate on a credit card is 17.99%. If a payment of $300.00 is...
The annual interest rate on a credit card is 17.99%. If a payment of $300.00 is made each month, how many months will it take to pay off an unpaid balance of $2,485.87? Assume that no new purchases are made with the credit card.
When you purchased your​ car, you took out a​ five-year annual-payment loan with an interest rate...
When you purchased your​ car, you took out a​ five-year annual-payment loan with an interest rate of 6.1 % per year. The annual payment on the car is $ 5,100. You have just made a payment and have now decided to pay off the loan by repaying the outstanding balance. What is the payoff amount for the following​ scenarios? a. You have owned the car for one year​ (so there are four years left on the​ loan)? b. You have...
angelica received a 12 year non subsidized student loan of 17000 at an annual interest rate...
angelica received a 12 year non subsidized student loan of 17000 at an annual interest rate of 5.5% (compounded monthly) she will begin repaying the loan after she graduates in 4 years how much interest in dollars must she pay on the loan during the time that payments on the loan are not being made
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT