She was charged 1 penalty on the loan balance how much does


On September 1, 2000, Susan bought a motorcycle for $ 10,000. She paid $ 1,000 and borrowed the remainder with a five year loan at stated annual rate of 9.6 percent compounded monthly. Susan started making monthly payments exactly one month after the purchase, i.e. October 1, 2000. She made last regular payment on October 1, 2002. Then she decided to pay off the loan.

She was charged 1% penalty on the loan balance. How much does she owe including the penalty on November 1, 2002 to pay off the loan?

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Financial Management: She was charged 1 penalty on the loan balance how much does
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