Question
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
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 :$261,000
Interest Rate :15.8%
Life :64 years
Date of Loan :January 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 29payments have been made, what percentage of the totalinteresthas been paid (round to the nearest percentage point)?
4.After 29payments have been made, what percentage of the totalprincipalhas been paid (round to the nearest percentage point)?
Redo the problem if the interest rate is3%
Required:
5.What is the annual payment (round to the nearest $)?
6.What are the totalinterestpayments (round to the nearest $)?
7.After 29payments have been made, what percentage of the totalinteresthas been paid (round to the nearest percentage point)?
8.After 29payments have been made, what percentage of the totalprincipalhas been paid (round to the nearest percentage point)?
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