Question: Could someone tell which is correct or incorrect for the ones thats incorrect write a brief 5-30 words on why its incorrect A $50.000 loan
Could someone tell which is correct or incorrect for the ones thats incorrect write a brief 5-30 words on why its incorrect
A $50.000 loan is to be amortized over 7 years with annual end of year payments. Clearly STATE which of the choice(s) is/are CORRECT and which are INCORRECT? If a statement is incorrect, you must briefly explain why. (Note: You can write several full sentences in the answer boxes but keep the explanations to 5-30 words). a. The annual payments would be larger if the Interest rate were lower b. If the loan were amortized over 10 years rather than years, and if the interest rate were the same in either case, the first payment would include more dollars of interest under the year amortization plan The proportion of each payment that represents interest would be lower the interest rate were lower, d. The last payment would have a higher proportion of interest than the first payment e. The proportion of interest versus principal repayment would be the same for each of the payments
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