Year Beginning Balance 1 $ 72,000.00 2 59,727.14 3 46,472.44 4 32,157.37 5 16,697.10 Total Payment $ Interest Payment Principal Payment Endin 12,272.86 $ 13,254.69 14,315.07 15,460.27 16,697.10 18,032.86 $ 18,032.86 18,032.86 18,032.86 18,032.86 A 5,760.00 $ 4,778.17 3,717.80 2,572.59 1,335.77 J b. How much interest is paid in the third year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. How much total interest is paid over the life of the loan? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Year Beginning Balance 1 $ 72,000.00 2 59,727.14 3 46,472.44 4 32,157.37 5 16,697.10 Total Payment $ Interest Payment Principal Payment Endin 12,272.86 $ 13,254.69 14,315.07 15,460.27 16,697.10 18,032.86 $ 18,032.86 18,032.86 18,032.86 18,032.86 A 5,760.00 $ 4,778.17 3,717.80 2,572.59 1,335.77 J b. How much interest is paid in the third year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. How much total interest is paid over the life of the loan? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Leave no cells plank - De certain to enter "U" wherever requirea.)
Year Beginning Balance Total Payment Interest Payment Principal Payment
1
$
72,000.00 $ 18,032.86 $
5,760.00 $
12,272.86 $
2
59,727.14
18,032.86
4,778.17
13,254.69
3
46,472.44
18,032.86
3,717.80
14,315.07
4
32,157.37
18,032.86
2,572.59
15,460.27
5
16,697.10
18,032.86
1,335.77
16,697.10
A
b. Interest paid in third year
c. Interest paid over the life of loan
✔
Ending Bala
59,7
46,4;
32,15
16,69
b. How much interest is paid in the third year? (Do not round intermediate calculations
and round your answer to 2 decimal places, e.g., 32.16.)
c. How much total interest is paid over the life of the loan? (Do not round intermediate
calculations and round your answer to 2 decimal places, e.g., 32.16.)
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