How Much Interest Is Paid in the 53^rd Monthly Payment

question 37

Multiple Choice

How much interest is paid in the 53^rd monthly payment interval of a loan for $43 200? The loan is amortized at a rate of 9.17% compounded annually over 7 years.

• A)$411.11
• B)$111.11
• C)$144.11
• D)$444.11
• E)$400.11

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Definitions:

Investment

Utilizing financial resources with the anticipation of accruing income or profits.

Quarterly Dividend

A payment made by a corporation to its shareholders, usually as a distribution of profits on a quarterly basis.

Dividend Income

Income received from owning shares of a company which pays out earnings to its shareholders.