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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 $415.000 9.9% 64 years January 1, 2021 Use the instaliment 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 Interest Rate Life Date of Loan

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 $415.000 9.9% 64 years January 1, 2021 Use the instaliment 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 Interest Rate Life Date of Loan

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 $415,000 99% 64 years 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. Interest Rate Life Date of Loan
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 $415,000 99% 64 years 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. Interest Rate Life Date of Loan
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 $)? %24 7. After 26 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)? 8. Alter 26 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point)?
Transcribed Image Text: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 $)? %24 7. After 26 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)? 8. Alter 26 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point)?
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