A loan is amortized over five years with monthly payments


A loan is amortized over five years with monthly payments (i.e. end of month) at an annual nominal interest rate of 5% compounded monthly. The first payment is 500 and is to be paid one month from the date of the loan. Each succeeding monthly payment will be 20 more than the prior payment. Calculate the outstanding loan balance immediately after the 40th payment is made. Round your answer to the nearest whole number.

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Financial Management: A loan is amortized over five years with monthly payments
Reference No:- TGS01090462

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