You Borrowed the Amount Indicated in the Balance After Payment

question 54

Essay

You borrowed the amount indicated in the Balance after payment column of the following schedule from your friendly credit union. You agreed to repay the loan in monthly payments equal to of the original loan, including interest due and principal. Interest is charged at a rate of 12.2% per annum computed on the monthly balance.
Required: Complete the repayment schedule (this includes totalling of the Payment, Interest paid and Principal repaid columns to check the accuracy of your work).
a) What is the loan balance after the third payment?
b) What is the total amount needed to repay the loan?

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Definitions:

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Nonprofit organizations funded by a single source, like a family or corporation, to support charitable activities.

Tax Deductible

Refers to expenses that can be subtracted from taxable income, reducing the overall amount of tax owed to the government.

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Items or funds given voluntarily without expectation of payment, often as a token of affection, appreciation, or for charitable reasons.

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Programs and policies designed to enhance the well-being and quality of life of individuals, especially those in need.