DON'T USE EXCEL

You buy a house at the beginning of the year 2018 at the price of $100,000 with 10 yearly equal installment (pay interest at the end of the year). You are not required to pay any money up front or at the end of your agreement. Assume that your opportunity cost of capital is 4% per year.

1) what is the amount of the installment payment per year?

2) At the beginning of the year 2020, you sell the house at $120,000. With this sales money of $120,000, you pay the debt you owe to the bank. How much should you pay to the bank? After paying the bank, how much is yours?