Question

Miss Sun Tzu obtained a level principal and interest on the balance loan of $78,000. The nominal rate of interest is 6% with a term of 5 years and payments scheduled at the end of each month. Compute The 15th payment?

1559

1579

1599

1619

Answer 1

Year	Principal	Interest = carrying value* interest rate	Principal paid = balance/total period of laon	carrying value of principal = beginning carrying value-prinicpal paid	Monthly payment = principal paid +interest
1	78000	390	1300	76700	1690
2	76700	383.5	1300	75400	1683.5
3	75400	377	1300	74100	1677
4	74100	370.5	1300	72800	1670.5
5	72800	364	1300	71500	1664
6	71500	357.5	1300	70200	1657.5
7	70200	351	1300	68900	1651
8	68900	344.5	1300	67600	1644.5
9	67600	338	1300	66300	1638
10	66300	331.5	1300	65000	1631.5
11	65000	325	1300	63700	1625
12	63700	318.5	1300	62400	1618.5
13	62400	312	1300	61100	1612
14	61100	305.5	1300	59800	1605.5
15	59800	299	1300	58500	1599
answer is 3	1599