Question
You borrow money on a self liquidating installment loan (equal payments at the end of each year, each payment is part principal part Loan amount
You borrow money on a self liquidating installment loan (equal payments at the end of each year, each payment is part principal part Loan amount $218,000 Interest Rate 9.6% 47 years Date of Loan January 1, 2023 Use the installment method - not steal Do NOT round any intermediate 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 20 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)? % 4. After 20 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 3% (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 20 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)? % 8. After 20 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point)? %
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