Don't used Ai solution Apple Bank makes a loan to Harry at 12.5 percent per year to be repaid by level annualpayments for t years. Exactly one year before the loan is to be terminated, Harry notices thatthe decrease in outstanding loan balance since he took out the loan is 18,027.36. Harry's lastpayment contains 461.58 in interest paid.a. Find the principal paid in the second payment.b. Find the total interest paid in the first three yearsc. Exactly what was the term of Harry's loan?d. Find OLB3please solve using formulas and hand-calculations, no excel

c. term of the loan t From the information:Decrease in the loan balance after t−1 years =…

Answered: Apple Bank makes a loan to Harry at…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 61P

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1. Apple Bank makes a loan to Harry at 12.5 percent per year to be repaid by level annual payments for t years. Exactly one year before the loan is to be terminated, Harry notices that the decrease in outstanding loan balance since he took out the loan is 18,027.36. Harry's last payment contains 461.58 in interest paid. a. Find the principal paid in the second payment. b. Find the total interest paid in the first three years c. Exactly what was the term of Harry's loan? d. Find OLB3
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