Answer:
The 20th payment willbe for 1,625
Explanation:
interest 12% annual
compounding monthly: 12% / 12 = 1%
payment at 20th month
First we will calcualte the principal at the moment of the 20th payment
[tex]principal \times (n- k+1)/n = principal_k[/tex]
[tex]50,000 \times (36- 20+1)/36 = principal_{20}[/tex]
principal after 19th payment: 23,611.11
23,611.11 x 1% = 236.11 interest expense
principal amortization
50,000 x 1/36 = 1.388,89
total cuota= interest + principal amortization =
236.11 + 1,388.89 = 1,625
