Find the amount of interest in the payment

Assignment Help Financial Management

Reference no: EM131937583

A loan has a term of 30 years. Payments are made at the end of each year. The interest rate is an annual effective rate of interest of 4.4%. The first payment is $1,085. Each successive payment is increased by $91. Find the amount of interest in the 12th payment. Hint: as this is an increasing payment pattern increasing by a constant amount, the formula Ik = X - Xvn-k will not work. You will have to look at the more general case of amount of interest in the kth payment. Give your answer to the nearest cent.

Reference no: EM131937583

Questions Cloud

What is the average expected inflation rate : What is the average expected inflation rate for a one-, two-, three-, four-, and five-year bond? What should be the MRP for a one-, two-, three-, four.

Wireless network environment : Using what you know about your wireless networks (in your home or work), analyze the wireless network environment and answer the following questions.

Numerous components for data to traverse : Communications within a computer network rely on numerous components for data to traverse from the initial sender of a message or file to the receiver

What is the required return on the market : Assume that the risk-free rate is 3.90% and that the market risk premium is 10.00%. What is the required return on the market?

Find the amount of interest in the payment : A loan has a term of 30 years. Payments are made at the end of each year. Find the amount of interest in the 12th payment.

Explain how the poet uses literary elements from poetry : Analyze the poem and explain how the poet uses literary elements from poetry to convey that theme.

What is the total cost forecast for volume of patient visits : Assume that Randall Clinic has fixed costs of $500,000 and a variable cost (per visit) rate of $20. What is the total cost forecast for a volume of 5,000.

Most serious security problem : The insider threat has received considerable attention, and is often cited as the most serious security problem. It is also considered the most difficult

Determine the time-weighted rate of return : Given that the dollar-weighted rate of return is 0%, determine the time-weighted rate of return.

User Account

All Pages