Question
Consider a fixed-rate, constant payment 6-year mortgage with annual payments. The interest rate is 7.1% per annum and the principal (or loan) amount is $8,945.
Consider a fixed-rate, constant payment 6-year mortgage with annual payments. The interest rate is 7.1% per annum and the principal (or loan) amount is $8,945.
What is the annual payment to amortise the loan? (Answer in two decimal places)
How much of that payment is for interest and how much is for principal in year 1?
What is the remaining loan balance at the end of year 2?
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
15th edition
978-1118159644, 9781118562185, 1118159640, 1118147294, 978-1118147290
