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please hand-write or type out work, not a spreadsheet 2. One takes out a loan of 5000 dollars and will pay it back on installments
please hand-write or type out work, not a spreadsheet
2. One takes out a loan of 5000 dollars and will pay it back on installments with a payment at the end of every year over a 5 year period. Interest is 6 percent effective. The loan is paid back by the "constant principal method" where a payment is made to principal and the interest is paid on the unpaid balance. 10 points: set up a payment schedule and give the total payment made at the end of every year. 10 points: suppose the loan is sold to another investor who wishes to earn 8 percent interest (effective) based on the payments calculated on the previous part. What is the selling price of the loan so that the investor earns the desired rate? 2. One takes out a loan of 5000 dollars and will pay it back on installments with a payment at the end of every year over a 5 year period. Interest is 6 percent effective. The loan is paid back by the "constant principal method" where a payment is made to principal and the interest is paid on the unpaid balance. 10 points: set up a payment schedule and give the total payment made at the end of every year. 10 points: suppose the loan is sold to another investor who wishes to earn 8 percent interest (effective) based on the payments calculated on the previous part. What is the selling price of the loan so that the investor earns the desired rateStep by Step Solution
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