You just borrowed $50,000 to be repaid in quarterly installments of an equal amount over the...
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You just borrowed $50,000 to be repaid in quarterly installments of an equal amount over the next 5 years. The annual interest rate is 8.99%. In this question, the sign (+/-) does not matter as long as you calculate each of the amount correctly as your answer. a) How much principal payment are you making in the second payment in Year 2? b) How much interest are you paying in the last payment in Year 3? c) What is your outstanding balance exactly after 4 years? You just borrowed $50,000 to be repaid in quarterly installments of an equal amount over the next 5 years. The annual interest rate is 8.99%. In this question, the sign (+/-) does not matter as long as you calculate each of the amount correctly as your answer. a) How much principal payment are you making in the second payment in Year 2? b) How much interest are you paying in the last payment in Year 3? c) What is your outstanding balance exactly after 4 years?
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Answer rating: 100% (QA)
a To calculate the principal payment in the second payment in Year 2 we need to know the amount of each quarterly payment which can be calculated using the formula for a loan payment P r A 1 1 rn wher... View the full answer
Related Book For
Fundamentals of Financial Management
ISBN: 978-1337395250
15th edition
Authors: Eugene F. Brigham, Joel F. Houston
Posted Date:
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