A loan of $20,000 is to be repaid by annual payments of $4,000 per annum for the 1st 5yrs, and payments of $4500 per yr thereafter for as long as necessary. Assuming that the effective rate of interest is 18%,
Determine: a. The total number of payments. ; b. The amount of the smaller final, made one year after the last regular payment.
I am not sure of the exact working, since there's an eff rate of interest as well, its confusing me.
I am coming up with a number of 2.15 for the payments of 4500...