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  3. a 20 year loan of $120, 000 at i = 6% is paid off

A 20 year loan of $120, 000 at i = 6% is paid off by...

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Accounting

A 20 year loan of $120, 000 at i = 6% is paid off by paying 130%of each year’s interest at the end of each year for the first 12years, and then for the next 8 years pay off the loan by paying offconstant principle at the end of each year. Find the value of thelast payment.

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4.1 Ratings (726 Votes)
Value of last payment is 12786i am attaching a excel table in which calculations are done Allthe formulas used are shown separately in the respective coloredcolumnsIn the above sheetIn first yearInterest payable is 1200006 7200 As    See Answer
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