Question

Similarly to the Gilbert Lumber Company case, suppose today is January 1, 2020 and your company, Maschera Corp. has a loan with an APR of 18% whose principal is reduced by $4,000 on the last day of every month. The balance outstanding on this loan on December 31, 2019 (i.e., yesterday) was $389,000. Find the TOTAL amount of interest that Maschera will pay over the next calendar year; that is, over the next 12 months. (Acceptable error = $200)
Carefully note that, as stated, the principal payments on the loan occur on the last day of each month. Thus, for example, during the entire month of January, the balance outstanding of the loan is equal to the balance that loan had on December 31

Answer 1

Answer:

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