AMORTIZATION QUESTIONS 1. You want to buy a car, and a local bank will lend you $25,000. The loan will be fully amortized over 5 years and the nominal interest rate will be 15%. What will be the annual loan payment? EMI = Px (r) x (1+r)^ (1+r)^- T P= 25,000 X (125) x (1+1.25) 60 (1 + 1.25) 2. What will be the remaining principal balance at the end of the fourth 3. What will be the interest rate payment for the fifth year? year?

AMORTZATION QUESHONS 1. You want to buy a cas, ind a local bank will lend you 525 con The loun will be fully amortized over 5 ycars and the nominat interest rale will be 15s. What will be the armual loan payment? EMI =(1+r)n1P(r)(1+r)n (1+1.25) 2. What will be the remaining principal balance at the end of the fourth your? 3. What will be the interest rate payment for the fifth year