Loan with Principal and Interest

2 You borrow money on a self liquidating installemnt loan (equal payments at the end of each year, each payment is part principal part interest) 3 Loan 4 Interest Rate 5 Life (years) 6 Date of Loan 7 $423,000 12.50% 54 January 1, 2019 9 Use the installment method-not straight line 10 Do NOT round any interrmediate numbers 11 Do NOT turn this into a monthly problem 12 13 a) What is the annual payment? 14 b) What are the total interest payments? 15 c) After 34 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)? 16 d) After 34 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point)? 17 18 Redo the problem if the interest rate is 19 20 (for a well designed spreadsheet this should take 30 seconds) 21 22 e) What is the annual payment? 23 f What are the total interest payments? 24 g) After 34 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)? 25 h) After 34 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point)? 2.00%