You Have a 5-Year Amortized Loan with a Nominal Rate

question 42

Multiple Choice

You have a 5-year amortized loan with a nominal rate of 11% and annual payments of $541.14.What is the original (time 0) principal of the loan?

• A) $2,000.00
• B) $2,705.70
• C) $2,289.31
• D) $1,678.86
• E) $2,051.35

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