A loan has a term of 30 years payments are made at the end


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.

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Financial Management: A loan has a term of 30 years payments are made at the end
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