Help with a loan question

vendredi 7 novembre 2014

I'm having trouble getting the correct answer for this problem.



Bob takes out a loan of 1000 at an annual effective interest rate of i: You are

given:



(a) The first payment is made at the end of year 6.



(b) Ten equal annual payments are made to repay the loan in full at the end

of 15 years.



(c) The outstanding principal after the payment made at the end of year 10

is 908.91.



Calculate the outstanding principal at the end of year 5.





Help with a loan question

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