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 $572,000 Interest Rate 9.7% Life 54 years Date of Loan January 1, 2023 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 $)? $ 3. After 22 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)? % 4. After 22 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 $)? $6. What are the total interest payments (round to the nearest $)? $7. After 22 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)? % 8. After 22 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point)? %
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 $572,000 Interest Rate 9.7% Life 54 years Date of Loan January 1, 2023 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 $)? $ 3. After 22 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)? % 4. After 22 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 $)? $6. What are the total interest payments (round to the nearest $)? $7. After 22 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)? % 8. After 22 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point)? %
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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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 $572,000 Interest Rate 9.7% Life 54 years Date of Loan January 1, 2023 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 $) ? $ 3. After 22 payments have been
made, what percentage of the total interest has been paid (round to the nearest percentage point)? % 4. After 22
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 $)? $ 6. What are the total interest payments (round to the
nearest $) ? $7. After 22 payments have been made, what percentage of the total interest has been paid (round to the
nearest percentage point)? % 8. After 22 payments have been made, what percentage of the total principal has been
paid (round to the nearest percentage point)? %
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