Two loans for equal amounts are amortized at 4% interest. Loan X must be repaid in 30 level annual payments. The Y Loan must be repaid in 30 annual payments, each containing equal principal amounts with the interest portion of each payment based on the unpaid balance. The payment on loan X first exceeds the payment on loan Y at the end of year t. find t.

Answer rating: 100% (QA)

To find the value of t we need to compare the payment amounts for Loan X and Loan Y over the 30year ... View the full answer