Answer to Question #241619 in Accounting for Manish Kumar

Question

R has a ten-year loan of $95685 at 6% interest. What payment will R make in the seventh year?

 

Answer 1

$A=P(1+r/100)^n$

$r=6\%$

first year, A$=$ $95685\times 1.06=101426.1$

2nd year, $A=101426.1\times1.06=107511.666$

3rd, $A=107511.666\times 1.06=113962.366$

4th year, $A=113962.366\times 1.06=120800.1079$

5th year, $A=120800.1079\times =128048.1144$

6th year, $A=128048.1144\times 1.06=13573.0013$

7th year, $A=135731.0013\times 1.06=\$143874.8613$