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Question 1 of 8

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The opening loan balance for the renovation loan is $106,000

The nominal annual interest rate is 7%, compounded annually. The rate for one year is 7%

Interest is posted to the nearest cent at the end of each year. The repayment is made after that interest is posted

There are 4 full regular repayments of $25,302.37, followed by one adjusted final repayment. The final repayment must reduce the balance

Money amounts are in dollars. Interest is posted to the nearest cent
Payment numberBalance beforeInterestRepaymentBalance after
4$48,509.96$3,395.70$25,302.37$26,603.29
5$26,603.29??$0
(a)1 mark

Determine the posted interest for the period of the adjusted final repayment

Format: nearest cent
(b)1 mark

Determine the final repayment after the last interest amount is posted

Format: nearest cent