Donna makes annual end of year payments of $5,403.71 on a four year loan with an interest rate of 13 percent.The original principal amount was: (Round to the nearest whole dollar)
A) $16,073
B) $22,139
C) $15,092
D) $17,175

Question

Quizplus · Accepted Answer

PV = PMT × 11ea7fdb_fc1a_edc8_a768_2bd2c6c22967_TB2902_11 PV = 5,403.71 × 11ea7fdb_fc1a_edc9_a768_f72a5e40a7d9_TB2902_11 = $16,073.18
Using a financial calculator:
N = 4, I/Y = 13, PMT = -5,403.71, FV = 0, cpt PV = $16,073.18

Donna Makes Annual End of Year Payments of $5,403