Problem:
A loan of $25,000 is repaid with monthly payments of $500 at the end of each month, and a smaller final payment one month after the last regular payment, at a nominal interest rate of i^(12) = 0.06.
Required:
Question: Find the outstanding loan balance, when the borrower has made payments equal to the amount of the loan.
Note: Be sure to show how you arrived at your answer.