What are the interest payments on a $200 loan if the contractual rate is 12%, the loan will be paid back in four uniform interest and principal payments at the end of the next four years, and the remaining balance method of calculating interest will be used (fully amortized)? What is the actuarial, annual percentage, and the effective interest rate? (AIR, APR, ie =12%)

 

What is the annual loan payment?

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

What is the interest payment in the fourth year?

What is the principal payment in the second year?

What is the actuarial rate?

Answer rating: 100% (QA)

To calculate the interest payments on a 200 loan we need to use the remaining balance method of calculating interest Lets break down the questions one ... View the full answer