Problem 9-43 Loan repayment (LO9-4] If your uncle borrows $60,000 from the bank at 10 percent interest over the eight-year life of the loan. Use Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. What equal annual payments must be made to discharge the loan, plus pay the bank its required rate of interest? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Annual payments b. How much of his first payment will be applied to interest? To principal? (Do not round intermediate calculations. Round your final answers to 2 decimal places.) First Payment Interest Principal c. How much of his second payment will be applied to each? (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Second Payment Interest Principal Appendix D Present value of an annuity of $1, PVIFA PVA= A 1- 1 (1+i) Period 1% 2% 3% 4% 5% 7% 8% 9% 10% 11% 12% 1 1 0.935 0.990 1.970 0.980 1.942 0.971 1.913 0.962 1.886 0.909 1.736 2 3 0.917 1.759 2.531 2.941 3.902 4.853 2.884 3.808 4.713 0.952 1.859 2.723 3.546 4.329 Percent 6% 0.943 1.833 2.673 3.465 4.212 4.917 5.582 0.926 1.783 2.577 3.312 3.993 1.808 2.624 3.387 4.100 2.829 3.717 4.580 5.417 6.230 2.487 3.170 2.775 3.630 4.452 5.242 6.002 4 0.901 1.713 2.444 3.102 3.696 0.893 1.690 2.402 3.037 3.605 3.240 5 3.890 3.791 6 4.767 4.355 4.111 5.795 6.728 5.601 6.472 5.076 5.786 4.486 5.033 7 5.389 8 7.020 6.210 7.652 8.566 9.471 9 7.325 8.162 8.983 9.787 10.575 6.733 7.435 8.111 8.760 9.385 6.463 7.108 7.722 8.306 5.971 6.515 7.024 7.786 8.530 9.253 4.868 5.335 5.759 6.145 4.231 4.712 5.146 5.537 5.889 10 4.623 5.206 5.747 6.247 6.710 7.139 7.536 7.904 8.244 5.535 5.995 6.418 6.805 4.564 4.968 5.328 5.650 5.938 6.194 6.802 7.360 7.887 8.384 8.853 11 10.368 7.499 7.943 6.495 6.814 6.207 6.492 12 11.255 9.954 8.863 13 7.103 12.134 13.004 6.750 6.982 14 10.635 11.296 11.938 12.561 9.986 10.563 11.118 11.652 9.394 9.899 10.380 10.838 8.358 8.745 9.108 9.447 9.295 9.712 10.106 7.367 7.606 15 6.424 6.628 6.811 6.974 HER 7.161 7.487 7.786 8.061 8.313 8.544 8.756 13.865 14.718 7.191 8.559 8.851 16 7.824 17 15.562 16.398 12.166 12.659 9.763 10.059 7.379 7.549 7.702 18 11.348 12.106 12.849 13.578 14.292 14.992 15.678 16.351 19.523 22.396 27.355 31.424 13.166 13.754 14.324 14.877 17.413 19.600 9.122 9.372 9.604 9.818 8.022 8.201 8.365 8.514 19 7.120 7.250 7.366 7.469 10.477 10.828 11.158 11.470 12.783 17.226 18.046 22.023 13.134 13.590 10.336 10.594 20 1 1.274 11.690 12.085 12.462 14.094 15.372 17.159 18.256 8.950 9.129 9.823 7.839 7.963 8.422 25 15.622 11.654 10.675 9.077 30 25.808 32.835 17.292 19.793 12.409 13.332 13.765 15.046 15.762 11.258 11.925 12.233 9.427 9.779 40 10.274 10.757 10.962 8.694 8.951 23.115 25.730 7.843 8.055 8.244 8.304 50 39.196 21.482 13.801 9.915 9.042 Appendix D (concluded) Present value of an annuity of $1 Percent 13% 16% 17% 19% 35% 50% 14% 0.877 15% 0.870 25% 0.800 0.885 40% 0.714 0.862 18% 0.847 1.566 Period 1. 2. 3 0.855 1.585 0.667 30% 0.769 1.361 0.840 1.547 1.668 1.647 1.626 20% 0.833 1.528 2.106 2.589 1.605 1.111 1.440 1.952 0.741 1.289 1.696 1.997 2.174 1.816 2.361 2.974 1.407 2.283 2.855 2.246 2.798 1.224 1.589 1.849 2.140 2.639 4 2.690 1.605 2.322 2.914 3.433 3.889 5..... 3.517 3.352 3.274 3.127 3.058 2.991 2.166 2.436 2.643 2.035 2.168 6 3.998 3.326 2.210 2.743 3.199 3.589 3.922 4.207 4.451 4.659 2.362 2.689 2.951 3.161 3.329 3.784 4.160 4.487 7 3.685 4.039 4.344 4.423 4.288 4.639 1.737 1.824 1.883 1.922 3.498 3.812 4.078 3.410 3.706 3.954 3.605 3.837 2.802 2.925 8 4.799 2.263 2.331 2.379 2.414 9 4.303 3.019 5.132 5.426 4.946 5.216 5.453 4.772 5.019 4.607 4.833 4.163 4.339 4.031 4.192 2.220 2.385 2.508 2.598 2.665 2.715 2.752 2.779 2.799 3.463 3.571 10 4.494 11 5.687 5.918 2.438 5.234 5.421 5.029 5.197 4.836 4.988 4.656 4.793 4.486 4.611 4.327 4.439 3.092 3.147 3.190 12 3.656 3.725 3.780 5.660 5.842 6.002 13 1.948 1.965 1.977 1.985 1.990 1.993 1.995 5.342 4.533 6.122 6.302 3.223 5.583 5.724 2.456 2.469 2.478 5.118 5.229 5.324 4.715 4.802 14 3.824 2.814 15 5.847 6.462 6.604 4.611 4.675 4.730 2.484 3.249 3.268 3.283 3.859 3.887 16 5.954 4.910 5.008 5.092 5.162 5.222 5.273 5.316 5.405 1.997 17 6.142 6.265 6.373 6.467 6.550 6.623 18 6.729 6.840 6.938 7.025 7.330 5.468 5.575 5.668 5.749 5.818 5.877 5.929 6.097 6.177 6.233 6.047 6.128 6.198 4.876 4.938 4.988 5.033 5.070 5.101 5.195 5.475 5.534 5.584 5.628 5.766 3.910 3.928 3.942 3.954 3.295 3.304 3.311 19 2.825 2.834 2.840 2.844 2.848 2.850 2.856 1.998 1.999 1.999 20 5.353 3.316 4.775 4.812 4.843 4.870 4.948 4.979 4.997 4.999 6.259 6.464 1.999 2.489 2.492 2.494 2.496 2.497 2.499 2.500 2.500 2.500 25 5.467 3.329 2.000 30 5.829 5.517 5.235 2.857 6.873 7.003 7.105 7.133 7.496 7.634 7.675 6.566 6.642 3.985 3.995 3.999 4.000 40 2.000 2.000 5.871 5.880 5.548 5.554 3.332 3.333 3.333 5.258 5.262 2.857 2.857 50 6.661 6.246 2.000