I'm having trouble with this problem:
A loan is being repaid with level annual payments based on an annual effective interest rate of $8\%$. If the outstanding balance immediately after the $10$th payment is $1000$, calculate the amount of interest in the $11$th payment
My attempt:
Since $B_{10} = 1000$, then $I_{11} = i*B_{10} = 0.08*1000 = 80$, but I feel like this answer is too easy and I'm missing something
You're right because $B_t=L\,a_{\overline{n-t}|i}$ and $I_{t+1}=iB_t$.