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vanessavz vanessavz
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A year ago
Melinda Paczniak borrowed $4,000 from a private source. Melinda agreed to repay the principal in four installments of $1,000 each. In addition, she paid interest each month, which was calculated by taking 1.5% (monthly rate) of the unpaid balance. Complete Melinda's loan payment schedule. Then use Melinda's loan payment schedule to solve the effective rate problem.

  UnpaidInterestPrincipalTotalNew
 
Month
BalancePaymentPaymentPaymentBalance
a.
1
____________$1,000____________
b.
2
____________$1,000____________
c.
3
____________$1,000____________
d.
4
____________$1,000____________
  ------------------   
 Total____________   
  
e.Compute the effective annual interest rate in the Paczniak loan agreement by using
  
 pr021-1.jpg
  
 where P is the average principal over the 4-month period, I is the total amount of interest, and T is 4/12 year.
Textbook 
Contemporary Business Mathematics for Colleges

Contemporary Business Mathematics for Colleges


Edition: 16th
Authors:
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bwhurdbwhurd
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A year ago
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vanessavz Author
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A year ago
this is exactly what I needed
Smair87
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Yesterday
Thanks
elizabetheldrid
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2 hours ago
Thank you, thank you, thank you!
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