Your Company Has Just Taken Out a 1-Year Installment Loan

question 128

Multiple Choice

Your company has just taken out a 1-year installment loan for $72,500 at a nominal rate of 20.0% but with equal end-of-month payments.What percentage of the 2nd monthly payment will go toward the repayment of principal?

• A) 101.72%
• B) 71.70%
• C) 86.71%
• D) 83.37%
• E) 97.55%

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