A loan of 250000 10 years compounded monthly at 6 annual rat

A loan of $250,000, 10 years compounded monthly at 6% annual rate. If you chose to make no payments until the end of the ten years, then pay back principal and interest in a single payment, how much would that payment in year 10 be?

Solution

Amount of Loan 250000 Future value factor for Yr-10 at 6% 1.7908 Future value of Loan amount 447700 Amount of Payment to be made 447700
A loan of $250,000, 10 years compounded monthly at 6% annual rate. If you chose to make no payments until the end of the ten years, then pay back principal and

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