The next 2 questions utilize the following data: (please work out the full calculation, using formula, and not using excel. I need to know how to do this by hand.

You borrow $50,000. This loan will be paid back over 6 years, with payments made at the end of each year. The interest rate charged on the loan is 9%.

What is the balance of the loan at the end of year one?

A. $38,568 B. $39,731 C. $41,229 D. $43,354

 

How much interest was paid in year three? 

Answer rating: 100% (QA)

To calculate the balance of the loan at the end of year one we can use the formula for calculating t... View the full answer