Determine the amount of the extra payment

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Reference no: EM132027442

Terms of a 7,000 loan are as follows:

60 equal monthly payments starting at the end of the first month, 8% nominal interest rate convertible monthly

An alternative is offered:

Monthly payments calculated as above.

First payment not due until the end of the fifth month.

An extra payment made at the end of the 60th month for the balance of the loan.

Determine the amount of the extra payment in the alternative payment scheme.

Reference no: EM132027442

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