Math Problem Statement
answer only Mary took a $500,000 loan from National Bank. As per the loan covenants, she is expected to make constant annual payments to National Bank for the next 40 years. If the EAR is 5%, how much interest is paid in the 18 th paymen
Solution
The interest paid in the 18th payment is $22,115.88.
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Math Problem Analysis
Mathematical Concepts
Financial Mathematics
Loan Amortization
Annual Payment Calculation
Formulas
Amortization formula
Interest payment formula in loan amortization
Theorems
Time value of money
Loan amortization
Suitable Grade Level
Grades 10-12
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