Homework question help needed

Accounting
Tutor: None Selected Time limit: 1 Day

You just took out a $12,000 loan for your small business. The loan has a 4 year term and repayment is in the form of 4 equal end-of-year payments. The interest rate on the loan is 11.5%. Consider the final loan payment. How much interest do you pay in the final payment?

Jun 24th, 2015

Thank you for the opportunity to help you with your question! Hi, He observes that work expands so as to fill the time available for its completion.

Hi,

PV= C*(1-(1+i)^-n)/i)

12000=C*(1.0.647)/0.115

12000=3.07C

C=12000/3.07

Cash flow per period

C=3908.79

y1= 3908*(1.115)^1

Y2=4357.42*1.115^2

y3= 5417.25*1.115^3

Y4=7509.37*1.115^4


Please let me know if you need any clarification. I'm always happy to answer your questions.
Jun 24th, 2015

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