You borrow money on a self liquidating installment loan (equal payments at the end of each...

 

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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 Interest Rate Life Date of Loan $618,000 15.2% 62 years 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 26 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)? % 4. After 26 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 $)? $ 6. What are the total interest payments (round to the nearest $)? $ 7. After 26 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)? % 8. After 26 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) Loan amount Interest Rate Life Date of Loan $618,000 15.2% 62 years 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 26 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)? % 4. After 26 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 $)? $ 6. What are the total interest payments (round to the nearest $)? $ 7. After 26 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)? % 8. After 26 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point)? %

Answer rating: 100% (QA)

To solve this problem we will use the installment method to calculate the annual payment total interest payments percentage of total interest paid aft... View the full answer