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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
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 | $692,000 | ||||||
Interest Rate | 9.40% | ||||||
Life (years) | 46 | ||||||
Date of Loan | January 1, 2016 | ||||||
Use the installment method - not straight line | |||||||
a) What is the annual payment? | |||||||
b) What is the total interest payments? | |||||||
c) After half the payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)? | |||||||
d) After half the payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point)? |
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