Upon graduation, Steven purchases a new home theater system for his apartment. T

Question

Upon graduation, Steven purchases a new home theater system for his apartment. To finance the system, he ' 'borrows' ' $5,000 from a new credit card at 21 percent per year compounded monthly. He fully intends to pay off the "loan" in 1 year while making monthly payments. Develop an Excel® table to illustrate the payment amounts and schedule for the loan, assuming payback follows Plan 1: Pay the accumulated interest at the end of each loan period. Plan 2:-Make equal principal payments, plus intrest on the unpaid balance at the end of the period Plan3: Make equal end of period payments Plan 4: Make a single payment of principal and interest at the end of the loan period. A different plan: Pay $X in principal at the end of months 1. 2. and 3: pay $2X at the end of months 4, 5. and 6; then $3X at 7, 8, 9; and finally $4X at 10,11,12. In addition, pay the accumulated interest at the end of each interest period.

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I think MachoSong is right ! Am not sure either about your query.

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