Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please show the calculations. Thank you! You borrow money on a self liquidating installemnt loan (equal payments at the end of each year, each payment

image text in transcribed Please show the calculations. Thank you!

You borrow money on a self liquidating installemnt loan (equal payments at the end of each year, each payment is part principal part interest) Loan $649,000 Interest Rate 13.50% Life (years) 47 Date of Loan January 1, 2020 Use the installment method not straight line Do NOT round any interrmediate numbers. Do NOT turn this into a monthly problem. a) What is the annual payment? b) What are the total interest payments? c) After 19 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)? d) After 19 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point)? Redo the problem if the interest rate is 3.00% (for a well designed spreadsheet this should take 30 seconds) e) What is the annual payment? f) What are the total interest payments ? g) After 19 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)? h) After 19 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Smart Sexy Auditing Clerk

Authors: Funny Career Quotes

1st Edition

B08RRJ97CP, 979-8588903189

More Books

Students also viewed these Accounting questions