Answer:
The appropriate response will be "9847.74".
Explanation:
The given values are:
Effective interest rate
= 19.56%
Loan amount
= $10,000
Per month rate
= $200
Now,
⇒ [tex]EAR = (1+\frac{r}{m})\times m - 1[/tex]
On substituting the values, we get
⇒ [tex]19.56 = (1+ \frac{r}{12} )\times 12 - 1[/tex]
⇒ [tex](1.1956) ^ {12} = 1 + \frac{r}{12}[/tex]
⇒ [tex]r = 18 \ percent[/tex]
Principal to be paid after the third payment will be:
= [tex]10000- 50- 50.75 - 51.51[/tex]
= [tex]9847.74[/tex]
