A loan is amortized over five years with monthly payments at an annual nominal interest rate of 9% compounded monthly. The first payment is 1000 and is to be paid one month from the date of the loan. Each succeeding monthly payment will be 2% lower than the prior payment. Calculate the outstanding loan balance immediately after the 40th payment is made.

$7,112.73

Explanation:

We can use the financial calcualtor and some formulas or use the easy way and use excel goal seek.

We contruct the table and find the value of the principal cell that makes the principal after 60 payment zero with payment of $1,000 decreasing 2% each month

the following is made:

A1 period    

1 to 60  

B1 couta

1,000 x (power(0.98;period cell)

C1 interest

previous principal x 9/1200

D1 amortization B1 - C1 that is installment less interest

E1 principal: previous principal - current period amortization

--loan schedule is attached to provide more help--

15 pounds of apples and 6 cups of flour

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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