$25,000 is borrowed at an annual compound rate of 8%. The loan is repaid with 5 annual payments, each of which is $500 greater than the previous payment. How much of the 2nd payment will be a principal payment?
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.
$25,000 is borrowed at an annual compound rate of 8%. The loan is repaid with 5 annual payments, each of which is $500 greater than the previous payment. How much of the 2nd payment will be a principal payment?
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