Asked by Myria Patterson on May 26, 2024
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Kimberly Carter borrowed $8,500 from a bank. The loan was amortized over two years. Kimberly made equal monthly payments of $354.00, which included interest on the unpaid balance of 0.50% per month (6% annually). Complete the first two months of the amortization schedule.
Amortization Schedule
A schedule of payments; the schedule shows the amount of interest and the amount of principal in each payment.
Interest on Unpaid Balance
The interest charged on the remaining amount of debt that has not been paid off within a given period.
Equal Monthly Payments
Fixed payments made every month, often used in loans or installment plans to repay the principal and interest.
- Scrutinize financial strategies involving the use of loans with amortization, monthly payment obligations, and compounded rates of interest.
- Analyze and complete amortization schedules for loans with fixed monthly payments.
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Learning Objectives
- Scrutinize financial strategies involving the use of loans with amortization, monthly payment obligations, and compounded rates of interest.
- Analyze and complete amortization schedules for loans with fixed monthly payments.
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