You borrow money on a self liquidating installment loan (equal payments at the end of each year, each payment is part principal part interest)

Loan amount	$708,000
Interest Rate	16.1%
Life	51 years
Date of Loan	January 1, 2021

Use the installment method - not straight line Do NOT round any intermediate numbers. Do NOT turn this into a monthly problem. Do NOT put in minus signs, answer all positive numbers.

Required:

1. What is the annual payment (round to the nearest $)?

$ _____

2. What are the total interest payments (round to the nearest $)?

$ ______

3. After 19 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)?

_______%

4. After 19 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point)?

______%

Redo the problem if the interest rate is 1%

Required:

5. What is the annual payment (round to the nearest $)?

$ ______

6. What are the total interest payments (round to the nearest $)?

$ ______

7. After 19 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)?

% ______

8. After 19 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point)?

% ______