A Company Borrows $100,000 with Interest at J₁₂ = 9

question 43

Multiple Choice

A company borrows $100,000 with interest at j₁₂ = 9%.The loan is to be amortized by monthly payments of $1550 for as long as necessary.A final smaller payment will be calculated so the loan will be exactly repaid.The outstanding balance immediately after the 88^th payment is $796.44.What is the value of the 89^th and final payment?

• A)$790.51
• B)$796.44
• C)$802.41
• D)$808.43

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Definitions:

Large

Of considerable or relatively great size, extent, or capacity.

Process

A sequence of measures or procedures implemented to reach a specific goal.

Divisions

In biology, refers to the process by which a cell divides into two or more cells; in general, can also mean the act of separating something into parts.

Normal Number

In mathematics, a number that has a specific, expected, or typical value within a given context; not widely used to describe a single concept.