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$555,000Interest Rate13.9%Life44 yearsDate of LoanJanuary 1, 2021

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 totalinterestpayments (round to the nearest $)?

$

3.After 19payments have been made, what percentage of the totalinteresthas been paid (round to the nearest percentage point)?

%

4.After 19payments have been made, what percentage of the totalprincipalhas been paid (round to the nearest percentage point)?

%

Redo the problem if the interest rate is2%

(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 totalinterestpayments (round to the nearest $)?

$

7.After 19payments have been made, what percentage of the totalinteresthas been paid (round to the nearest percentage point)?

%

8.After 19payments have been made, what percentage of the totalprincipalhas been paid (round to the nearest percentage point)?

%