SOLUTION: Juan negotiates a ten year loan which requires him to pay $1400 per month for the first five years, and $1700 for the remaining years.The interest rate is 10%, compounded monthly,
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Question 1192911: Juan negotiates a ten year loan which requires him to pay $1400 per month for the first five years, and $1700 for the remaining years.The interest rate is 10%, compounded monthly, and the first payment is due in one month.Determine the amount of principal in the 25th payment. Answer by Theo(13342) (Show Source):
You can put this solution on YOUR website! i believe i was able to solve this using excel.
below are displays of excerpts from that excel analysis.
the display shows that the payments are 1400 dollars a month starting at end of month 1.
it shows that the interest part of the payment is 666.76 and the principal part of the payment is 1033.24 at end of month 25.
it shows that the payment becomes 1700 starting at the end of month 61.
it shows that the remaining balance is equal to 0 at the end of month 120.
