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A person promises to pay annually simple annual interest, i, on a loan where a constant fraction, f, of the outstanding principal is paid back
A person promises to pay annually simple annual interest, i, on a loan where a constant fraction, f, of the outstanding principal is paid back each year until the final year when both the interest and remaining principal are paid. For the information shown, find the values of i and f. Solve mathematically. End of Year 0 Receipt/Disbursement $10,000 -4900 1 2 -2940 You are getting an 8-year car loan for $16000 with simple annual interest rate of 10%. You plan to pay back $5000, at the end of year 2. Create the cash flow table from your viewpoint. End Of Year Amount Received Principal Paid Principal Interest Outstanding Paid Final Cash Flow 0 1 2 3 Using cash flow table, what is the final cash flow at the end of year 3 (value in the orange cell)? Enter an integer answer (For example, if you get 2.1, round it to 2; 2.8 is rounded to 3; and 2.5 is rounded to 3.)
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