Final answer:
To find the value of the fifth payment for a house costing $50,000 with a 15-month payment plan, we start by adding the four previous payments which total $52,000. Since this already exceeds the cost of the house, Payment 5 would be $0 as the house is fully paid for by the fourth payment.
None of the given option are correct
Step-by-step explanation:
The question provided requires calculating the value of the fifth partial payment for a house under a specific payment plan, using the American rule method. This method involves creating an amortization or payment table, where each partial payment is subtracted from the total cost of the house, and any interest or conditions are applied accordingly.
Let's calculate the fifth payment step-by-step:
Determine total payments already made: Payment 1 ($10,000) + Payment 2 ($12,000) + Payment 3 ($15,000) + Payment 4 ($15,000) = $52,000.
- Since the cost of the house is $50,000 and the payments made add up to $52,000, this indicates that by the fourth payment, the total cost of the house has already been covered.
- Therefore, Payment 5 would be $0, since the house has already been fully paid for by the fourth payment.
A payment table would typically list each payment, the amount, the balance after each payment, and the due date for each payment. However, since the house is already paid off by the fourth payment, the table would conclude there.
None of the given option are correct