You borrowed the amount indicated in the Balance after payment column of the following schedule from your friendly credit union. You agreed to repay the loan in monthly payments equal to of the original loan, including interest due and principal. Interest is charged at a rate of 12.2% per annum computed on the monthly balance.
Required: Complete the repayment schedule (this includes totalling of the Payment, Interest paid and Principal repaid columns to check the accuracy of your work).
a) What is the loan balance after the third payment?
b) What is the total amount needed to repay the loan?

Question

You borrowed the amount indicated in the Balance after payment column of the following schedule from your friendly credit union. You agreed to repay the loan in monthly payments equal to  of the original loan, including interest due and principal. Interest is charged at a rate of 12.2% per annum computed on the monthly balance.
   Required: Complete the repayment schedule (this includes totalling of the Payment, Interest paid and Principal repaid columns to check the accuracy of your work).
a) What is the loan balance after the third payment?
b) What is the total amount needed to repay the loan?

Quizplus · Accepted Answer

The Answer of You borrowed the amount indicated in the Balance after payment column of the following schedule from your friendly credit union. You agreed to repay the loan in monthly payments equal to  of the original loan, including interest due and principal. Interest is charged at a rate of 12.2% per annum computed on the monthly balance.
   Required: Complete the repayment schedule (this includes totalling of the Payment, Interest paid and Principal repaid columns to check the accuracy of your work).
a) What is the loan balance after the third payment?
b) What is the total amount needed to repay the loan?

You Borrowed the Amount Indicated in the Balance After Payment