Steven purchases a new home theatre system

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Upon graduation, Steven purchases a new home theatre system for his apartment.To finance the system, he borrows $5,000 from a new credit card at 21% per year compounded monthly. He fully intends to pay off the loan in 1 year while making monthly payments. Develop an excel table to illustrate the payment amounts and schedule for the loan, assuming payback follows a) Plan 1: Pay the accumulated interest at the end of each interest period and repay the principal at the end of the loan period b) Plan 2: Make equal principal payments plus interest on the unpaid balance at the end of the period c) Plan 3: Make equal end of period payments d) Plan 4: Make a single payment of principal and interest at the end of the loan period e) A different plan: Pay $X in principal at the end of months 1,2 and 3;Pay $2X at the end of months 4,5 and 6; then $3X at 7,8,9; and finally $4X at 10,11,12. In addition, pay the accumulated interests at the end of each interest period.

Reference no: EM13996753

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Steven purchases a new home theatre system : Upon graduation, Steven purchases a new home theatre system for his apartment.To finance the system, he borrows $5,000 from a new credit card at 21% per year compounded monthly. He fully intends to pay off the loan in 1 year while making monthly paym..

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