self-liquidatingYou Borrow money on a self liquidating installment loan (equal payments at the end of each year,

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self-liquidatingYou Borrow money on a self liquidating installment loan (equal payments at the end of each year, each payment is part principal part interest)
Loan		$775,000
Interest Rate		12.30%
Life (years)		52
Date of Loan		January 1, 2020


Use the installment method - not straight line
Do NOT round any intermediate numbers.

a) What is the annual payment?
b) What are the total interest payments?
c) After 21 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)?
d) After 21 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point)?

For your own edification, redo the problem if the interest rate is 3% and find the answer to part d (for a well-designed spreadsheet this should take 30 seconds)

Related Book For answer-question

answer-question

Financial Algebra advanced algebra with financial applications

Financial Algebra advanced algebra with financial applications

ISBN: 978-0538449670

1st edition

Authors: Robert K. Gerver

See More Books

Posted Date: Oct 16, 2020 11:03 AM

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