Sir please help urgently
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Sir please help urgently
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)
Loan amount $773,000
Interest Rate
14%
Life
41 years
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 $)?
2. What are the total interest payments (round
to the nearest $)?
2$
3. After 17 payments have been made, what
percentage of the total interest has been paid
(round to the nearest percentage point)?
%
4. After 17 payments have been made, what
percentage of the total principal has been paid
(round to the nearest percentage point)?
%
Redo the problem if the interest rate is 3%
(for a well designed spreadsheet this should take
30 seconds)
Required:
5. What is the annual payment (round to the
nearest $)?
2$
6. What are the total interest payments (round
to the nearest $)?
$
7. After 17 payments have been made, what
percentage of the total interest has been paid
(round to the nearest percentage point)?
%
8. After 17 payments have been made, what
percentage of the total principal has been paid
(round to the nearest percentage point)?
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