1. A loan of $50,000 has a stated interest rate of 4.5 percent per year. Repayment of principal and all accumulated interest is to be made at the end of year 10.

. a) How much is paid at the end of the tenth year?

. b) How much simple interest is paid (excluding the interest accumulated on interest)?

. c) How much compound interest is paid (i.e., interest on interest)?

Answer using calculator and showing formula with procedure.

1. A loan of $50,000 has a stated interest rate of 4.5 percent per year. Repayment of principal and all accumulated interest is to be made at the end of year 10. a) How much is paid at the end of the tenth year? b) How much simple interest is paid (excluding the interest accumulated on interest)? c) How much compound interest is paid (i.e., interest on interest)