question 33

A bank lends you $100,000 and requires you to repay the loan in 10 equal yearly payments. The first payment is due at the end of the first year. If the interest rate is 12 percent p.a., what is the amortization for the second year? 1) Principal = 6,482.23, interest = 12,316.19 2) Principal = 6,382.23, interest = 11,316.19 3) Principal = 6,582.23, interest = 11,316.19 4) Principal = 6,682.23, interest - 11,316.19 5) Principal = 6,582.23, interest - 12,316.19