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ANSWER BOTH QUICKLY PLEASE You have a 15,000 loan at 6% annually for 15 years. You agree to pay off the principal in installments of
ANSWER BOTH QUICKLY PLEASE
You have a 15,000 loan at 6% annually for 15 years. You agree to pay off the principal in installments of 1,000 per year, and to pay interest on the outstanding balance each year. Find the interest due in the 9th payment. (Hint: find the outstanding balance after the 8 th payment first.) A 6,000 loan is being repaid with regular payments of X at the end of each year for as long as necessary plus a smaller payment one year after the final regular payment. Immediately after the tenth payment, the outstanding principal is 3X. If the annual interest rate i is 10%, what is the value of X? (Hint: set up an equation for the outstanding balance after the 10 th payment, retrospectively) Step by Step Solution
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