9. (10 points) A loan in the amount of 480,000 is repaid with 20 end of year payments containing equal principal. The annual effective interest rate is 5% for the first 10 years and i thereafter. The 11th payment is 8400. Find the outstanding loan balance just after the 15th payment has been made.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
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9. (10 points) A loan in the amount of 480,000 is repaid with 20 end of
year payments containing equal principal. The annual effective interest rate is
5% for the first 10 years and i thereafter. The 11th payment is 8400. Find the
outstanding loan balance just after the 15th payment has been made.
Transcribed Image Text:9. (10 points) A loan in the amount of 480,000 is repaid with 20 end of year payments containing equal principal. The annual effective interest rate is 5% for the first 10 years and i thereafter. The 11th payment is 8400. Find the outstanding loan balance just after the 15th payment has been made.
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