Answered step by step
Verified Expert Solution
Link Copied!

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 ust

image text in transcribed
image text in transcribed
You borrow money on a self liquidating installment loan (equal payments at the end of each year, each payment is part principal part interest ust wie instaument meunod - not straight fine 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 24 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)? 4. After 24 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 24 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)? 8. After 24 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point)? You borrow money on a self liquidating installment loan (equal payments at the end of each year, each payment is part principal part interest ust wie instaument meunod - not straight fine 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 24 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)? 4. After 24 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 24 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)? 8. After 24 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Ecology, Sustainable Development And Accounting

Authors: Seleshi Sisaye

1st Edition

0415816351, 9780415816359

More Books

Students also viewed these Accounting questions