$10,000 is borrowed at 10% a year interest for five years. At the end of each year, the borrower pays a fixed amount of $2368. Solve for the yearly payment AND the remainingprinciple at the end of each year. Also, determine the total payment made over the 5 years.
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
$10,000 is borrowed at 10% a year interest for five years. At the end of each year, the borrower pays a fixed amount of $2368. Solve for the yearly payment AND the remaining
principle at the end of each year. Also, determine the total payment made over the 5 years.
Step by step
Solved in 2 steps with 2 images
