Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You borrow money on a self liquidating installment loan (equal payments at the end of each year, each payment is part principal part interest)
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 $492,000 Interest Rate 9.3% Life 52 years Date of Loan January 1, 2023 ok 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 $)? nces $ 46209 2. What are the total interest payments (round to the nearest $)? $ 3. After 21 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)? % 4. 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 1% (for a well designed spreadsheet this should take 30 seconds) Required: 5. What is the annual payment (round to the nearest $)? 50 D7 1 loa 2 int 3 life 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 31 2235 28 29 30
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started