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 Interest Rate $754,000 15.3% Life 44 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 16 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)? % 4. After 16 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 2%
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 Interest Rate $754,000 15.3% Life 44 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 16 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)? % 4. After 16 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 2%
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
Interest Rate
$754,000
15.3%
44 years
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.
Life
Date of Loan
Required:
1. What is the annual payment (round to the nearest $)?
2. What are the total interest payments (round to the nearest $)?
$
3. After 16 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)?
%
4. After 16 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 2%
(for a well designed spreadsheet this should take 30 seconds)
$1
Required:
5. What is the annual payment (round to the nearest $)?
Transcribed Image Text:2. What are the total interest payments (round to the nearest $)?
3. After 16 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)?
%
4. After 16 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 2%
(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 16 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)?
%
8. After 16 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point)?
%
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