A loan is being amortized over n-years with monthly payments of $295.32.The rate of interest on the loan is j₁₂ = 12%.The principal repaid in the 25^th payment is $206.41.What is the size of the loan? (Answer to the nearest dollar)

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The correct answer is A.The principal repaid in the 25th payment is $206.41. This means that the remaining balance after the 24th payment is $206.41. The monthly payment is $295.32, so the total amount paid after 24 payments is $295.32 * 24 = $7087.68. The total amount of the loan is therefore $7087.68 + $206.41 = $13,276.

A Loan Is Being Amortized Over N-Years with Monthly Payments