You desire to pay the remainder of the loan in a single


1. "You receive a loan for $7,529 where the APR is 7.4%, compounded monthly. You make a payment of $583.08 on this loan every 6 months (i.e., 2 payments per year), which will enable you pay off the loan in eactly 9 years. Immediately after making your regular payment at the end of 3 years, you desire to pay the remainder of the loan in a single payment. Compute the amount you must pay for the remainder of the loan."

2. "Ms. Jones wants to buy a new car for $16,000. She will make a down payment of $8,000. She would like to borrow the remainder from a bank at an interest rate of 9.2% compounded monthly. She agrees to pay off the loan monthly for a period of 2.25 years. Assume that Ms. Jones has made 13 payments and wants to figure out the balance remaining immediately after the 13th payment. Determine the remaining balance.

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Financial Management: You desire to pay the remainder of the loan in a single
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