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 $152,000

Interest Rate 13.3%

Life 52 years

Date of Loan January 1, 2023

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 total interest payments (round to the nearest $)? $

3. After 23 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)? %

4. After 23 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 23 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)? %

8. After 23 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point)? %