You're ready to make the last of four equal, annual payments on a $1,000 loan with a 10 percent interest rate.If the amount of the payment is $315.47, how much of that payment is accrued interest?
A)$28.68
B)$31.55
C)$100.00
D)$315.47

Question

Quizplus · Accepted Answer

The accrued interest for the last payment is calculated on the remaining principal after the third payment. The principal at the start of the fourth year is $286.79, and 10% of this is $28.68, which is the interest portion of the final payment.

You're Ready to Make the Last of Four Equal, Annual