Question
You borrowed $200,000 at 3% annual interest rate that you must repay over 5 years. The loan is amortized into five-equal end-of-year payments. (1) Calculate
- You borrowed $200,000 at 3% annual interest rate that you must repay over 5 years. The loan is amortized into five-equal end-of-year payments.
(1) Calculate annual payment amount
(2) Prepare a loan amortization schedule
(3) If you make equal monthly payment for 60 months, calculate monthly payment amount and prepare a monthly loan amortization schedule
(4) How much is total interest charge for 5 years, if you make annual payment? How much is total interest charge for 60 months, if you make monthly payment? Do you pay more interest with annual payment or monthly payment? Why?
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Your Finances Gods Way A Biblical Guide To Making The Best Use Of Your Money
Authors: Scott LaPierre
1st Edition
0736984003, 978-0736984003
