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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 | $775,000 | |||||||
| Interest Rate | 12.30% | |||||||
| Life (years) | 52 | |||||||
| 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 21 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)? | ||||||||
| d) After 21 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 | ||||||||
| 2.00% | ||||||||
| (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 21 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)? | ||||||||
| h) After 21 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point)? (sorry expert this is what the professor gave me i have nothing else) | ||||||||
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