1. What is the annual payment (round to the nearest $)? 2. What are the total interest payments (round to the nearest $)? 2$ 3. After 34 payments have been made, what percentage of the total Interest has been paid (round to the nearest percentage point)?
1. What is the annual payment (round to the nearest $)? 2. What are the total interest payments (round to the nearest $)? 2$ 3. After 34 payments have been made, what percentage of the total Interest has been paid (round to the nearest percentage point)?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
This is a loan problem with multiple parts please read and answer questions carefully.
Transcribed Image Text:You borrow money on a self liquidating installment loan (equal payments at the end of each year, each payment is part principal part
interest)
$319,000
16.1%
54 years
Loan amount
Interest Rate
Life
Date of Loan
January 1, 2021
Use the installment method - not straight line
Do NOT round any interrmediate 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 $)?
24
2. What are the total interest payments (round to the nearest $)?
3. After 34 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)?
4. After 34 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point)?
Transcribed Image Text:Redo the problem if the interest rate is 2%
(for a well designed spreadsheet this should take 30 seconds)
Required:
5. What is the annual payment (round to the nearest $)?
6. What are the total interest payments (round to the nearest $)?
7. After 34 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)?
8. After 34 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point)?
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