Question: Loan Consolidated Incorporated LCI is offering a special one time package
Loan Consolidated Incorporated (LCI) is offering a special one-time package to reduce Custom Autos’ outstanding bills to one easy-to-handle payment plan. LCI will pay off the current outstanding bills of $242,000 for Custom Autos it will make an annual payment to LCI at a 10% interest rate over the next fifteen years. First, what are the annual payments and the remaining balance of the loan at the end of each year (should Custom Autos want to pay off the loan early)? Second, when will the balance be half paid off? Finally, what is the total interest expense on the loan over the fifteen years?
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