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	$704,000
Interest Rate	16.7%
Life	62 years
Date of Loan	January 1, 2023

Use the installment method - not straight line 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)? ( Asking for percentage)

% -------------?

4. After 24 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point)? ( Asking for percentage)

% --------------?

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 24 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)?( Asking for percentage)

% ----------?

8. After 24 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point)? ( Asking for percentage)

% ------------?