They took out the loan on April $1$ and paid it back on December $1,265$ days later. How much did they

have to repay?

Principal

They also borrowed $$120,000$ from FCC to buy some cows. They agreed to pay it back with $3$

annual payments, plus $8\%$ interest on the remaining loan balance. If the loan is amortized under the

equal principal payment plan, how much did they have to pay each time? Assume the first payment

is exactly one year after the loan is received, and the other two payments are exactly one year apart.

Balance Remaining

How much would their payments be if they were amortized under the equal total payment

plan? The amortization factor for a $3-$period loan at $8\%$ interest is $38803.$

$1^{st}$ payment

Total Payment

Interest

Principal

Balance Remaining

$2^{nd}$ payment

$3^{rd}$ payment

Total

Carla and Jason were afraid that the payments the first two years would be too high for them. They

arranged a balloon payment loan, with $$25,000$ principal due each of the first two years, and the

remaining $$70,000$ due the last year. How much would their payments be under this plan?

Principal Interest Total Payment

Balance Remaining

$1^{st}$ payment

$2^{nd}$ payment

$3^{rd}$ payment

Total