How do you do number four? I attached 11.3 and 11.2.

4. Resolve the problem in Section 11.3 and Table 11.2 using an investment of $12,000 instead of $10,000 and calculate the annual payment, the interest per period, the principal per period, the PV of principal per period, the unpaid balance each year, and the cumulative total interest paid and the total principal paid at the end of each period using a 15% interest rate. 170 11. THE IMPACT OF LOANS UPON CASH FLOWS, TAXES, AND PROFITS | Table 11.2: Calculations for example Problem 1 using present value of Principal Approach PV of Interest Principal PV of Principal Interest Period per Total Interest Paid Unpaid Balance per Total Principal Paid per per Period Period Period P(t) 0.00 Period PVI(t) 0.00 795.05 476.19 834.80 876.54 I(t) 0.00 500.00 460.25 418.51 374.68 328.66 280.34 229.61 176.34 120.40 61.67 2,950.46 920.36 966.38 1,014.70 1,065.44 1,118.71 1,174.64 1,233.38 10,000.00 417.46 361.52 308.25 257.52 209.20 163.18 119.35 77.61 37.86 2,428.14 PVP 0.00 |_757.19 757.19 757.19 757.19 757.19 757.19 757.19 757.19 757.19 757.19 7,571.86 U(t) 10,000.00 9,204.95 8,370.16 7,493.62 6,573.25 5,606.87 4,592.17 3,526.73 2,408.02 1,233.38 0.00 IT(t) PT(t) 0.00 0.00 500.00 795.05 960.25 1,629.84 1,378.76 2,506.38 1,753.44 3,426.75 2,082.10 4,393.13 2,362.44 5,407.83 2,592.05 6,473.27 2,768.39 7,591.98 2,888.798,766.62 | 2,950.46 10,000.00 9 10 Totals 11.3 EXAMPLE PROBLEM OF LOAN PROBLEM USING PRESENT VALUE OF PRINCIPAL APPROACH Let us consider determining the values of interest and principal payments on a Loan of $10,000 (LV) with an interest rate (i) of 5% with 10 (n) yearly end-of-year payments. The initial values are: P = LV = $10,000 i = 5% = 0.05 n = 10. The initial calculated values are the loan payment (A) and the present value of the principal (PVP): (11.1) A = LV X (A/P, i, n) = LV xi x1 + i)"/{(1 + i)" 1}] = $10,000[0.05 x 1.05)1/{(1.05)10 1}] = $1,295.05 PVP = [(A i x LV)/(1 + i)] = LV i/(1+i)) x 1/((1+i)" 1)] = [(1,295.05 .05 x 10,000)/(1 + .05)] = $757.19. (11.2)