2. You purchase a basic package, 4-door sedan for your company's fleet for $18,000. The 3 yearloan has an interest rate of 13.75%. You make 10 payments and decide the 11th will be thepayment to pay off the loan in its entirety. How much does the 11" payment need to be, usingthe Actuarial Method?

Answered: Image /qna-images/answer/d528aa0c-f3be-4416-a855-17027076f71b.jpg

2. You purchase a basic package, 4-door sedan for your company's fleet for $18,000. The 3 year loan has an interest rate of 13.75%. You make 10 payments and decide the 11 will be the payment to pay off the loan in its entirety. How much does the 11th payment need to be, using the Actuarial Method?

2. You purchase a basic package, 4-door sedan for your company's fleet for $18,000. The 3 year loan has an interest rate of 13.75%. You make 10 payments and decide the 11 will be the payment to pay off the loan in its entirety. How much does the 11th payment need to be, using the Actuarial Method?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Loans

A loan is a term that we are all familiar with. The processing of loans is one of the most important functions of a bank. It keeps our economy stable and facilitates the implementation of monetary policies. Let's take a look at the different forms of loans and get some answers to some common questions.

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2. You purchase a basic package, 4-door sedan for your company's fleet for $18,000. The 3 year
loan has an interest rate of 13.75%. You make 10 payments and decide the 11th will be the
payment to pay off the loan in its entirety. How much does the 11" payment need to be, using
the Actuarial Method?

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