A person borrows $200 to be repaid in 8 years with 14% annually compounded inter

Question

A person borrows $200 to be repaid in 8 years with 14% annually compounded interest. The loan may be repaid at Single-payment loan repayment Personal Finance Problem the end of any earlier year with no prepayment penalty. a. What amount will be due if the loan is repaid at the end of year 1? b. What is the repayment at the end of year 4? c. What amount is due at the end of the eighth year? The amount due if the loan is repaid at the end of year 1 is (Round to the nearest cent) b. The repayment at the end of year 4 is $11. (Round to the nearest cent.) c. The amount due at the end of the eighth year is (Round to the nearest cent)

Explanation / Answer

a.

due at the end of the year 1=200*1.14^1=228

b.

due at the end of the year 2=200*1.14^4=337.79

c.

due at the end of the year 1=200*1.14^8=570.52

the above is the answer

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