Mortgage makes loans with the interest charged on the loan principal rather than on the unpaid balance. For a 4-year loan of $10,000 at 10% per year, what equal annual payment would be required to complete repayment of the loan in 4 years, if interest is charged on 

(a) the principal and 

(b) the unrecovered balance?

Answer rating: 100% (QA)

Answer 1 The principal balance in regard to a mortgage or other debt instrument is the amount due ... View the full answer