Suppose you take a loan of $50,000 for a car for 5 years. The interest rate is 5% percent, compounded monthly. What is the principal repaid in the 5th year? Enter your answer rounded off to two decimal places. Do not enter $ in the answer box.

Suppose you take a loan of $50,000 for a car for 5 years. The interest rate is 5% percent, compounded monthly. What is the principal repaid in the 5th year? Enter your answer rounded off to two decimal places. Do not enter $ in the answer box.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 8EA: You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how...

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Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

Question

Suppose you take a loan of $50,000 for a car for 5 years. The interest rate is 5% percent,
compounded monthly.
What is the principal repaid in the 5th year?
Enter your answer rounded off to two decimal places. Do not enter $ in the answer box.

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