You borrow money on a self liquidating installment loan (equal payments at the end of each year, each payment is part principal part interest) Loan amount $812,000 Interest Rate 17% Life 44 years Date of Loan January 1, 2023

Use the installment method - not straight line Do NOT round any interrmediate numbers. Do NOT turn this into a monthly problem. Do NOT put in minus signs, answer all positive numbers. Required: 1. What is the annual payment (round to the nearest $)? $

2. What are the total interest payments (round to the nearest $)? $

3. After 18 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)? %

4. After 18 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% (for a well designed spreadsheet this should take 30 seconds) Required:

5. What is the annual payment (round to the nearest $)? $

6. What are the total interest payments (round to the nearest $)? $

7. After 18 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)? %

8. After 18 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point)? %