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2) A 40 year, $100, 000 loan with effective annual interest i = 4% is paid by making payments of K at the end of each year for the first 20 years and payments of K-250 at the end of each year for the next 20 years. Find K, and find the OB20 and OB30. Lastly, fill out the following amortization table for 3 years. t 0 1 2 3 Payment Interest Principle Repaid Outstanding Balance $100,000

2) A 40 year, $100, 000 loan with effective annual interest i = 4% is paid by making payments of K at the end of each year for the first 20 years and payments of K-250 at the end of each year for the next 20 years. Find K, and find the OB20 and OB30. Lastly, fill out the following amortization table for 3 years. t 0 1 2 3 Payment Interest Principle Repaid Outstanding Balance $100,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2) A 40 year, $100, 000 loan with effective annual interest i = 4% is paid by making payments of K at the end of each year for the first 20 years and payments of K - 250 at the end of each year for the next 20 years. Find K, and find the OB20 and OB30. Lastly, fill out the following amortization table for 3 years. t 0 1 N 3 Payment Interest Principle Repaid Outstanding Balance $100,000
Transcribed Image Text:2) A 40 year, $100, 000 loan with effective annual interest i = 4% is paid by making payments of K at the end of each year for the first 20 years and payments of K - 250 at the end of each year for the next 20 years. Find K, and find the OB20 and OB30. Lastly, fill out the following amortization table for 3 years. t 0 1 N 3 Payment Interest Principle Repaid Outstanding Balance $100,000
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