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lapo4ka [179]
3 years ago
12

The following table shows a portion of a four-year amortization schedule. A 4-year amortization schedule. The loan amount or pri

ncipal is 19,900 dollars. At 25 months, the balance of the loan is 10,356 dollars and 3 cents.
After twenty-five payments, how much of the principal has been paid off?


a. $2,669.28

b. $10,353.25

c. $9,543.97

d. $12,213.25

Mathematics
1 answer:
yKpoI14uk [10]3 years ago
8 0

Answer:

  • Option c. $ 9,543.97

Explanation:

The row for month 25 shows that after <em>twenty-five payments</em> <u>the balance of the loan is  $10,356.03</u>

You are told that the<em> loan amount or principal is $ 19,900</em>.

From those two data, you can calculate <em>how much of the principal has been paid off after </em>25 months, because the amount paid off is equal to the loan less the balance after 25 payments:

  • Principal paid off = $ 19,900 - $ 10,356.03 = $9,543.97
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