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Question 1 of 8

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The calculation starts with $177,000 in the equipment loan

The nominal annual interest rate is 5%, compounded annually. The rate for one year is 5%

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

There are 3 full regular repayments of $50,791.82, followed by one adjusted final repayment. The final repayment must reduce the balance

The posted-cents convention applies to every row. Money amounts are in dollars
Payment numberBalance beforeInterestRepaymentBalance after
3$91,019.27$4,550.96$50,791.82$44,778.41
4$44,778.41??$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