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 $630,000 Interest Rate 17.8% Life 62 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 $)? $ 3. After 25 payments have been made, what percentage of the total interest 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 | $630,000 |
| Interest Rate | 17.8% |
| Life | 62 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 $)?
$
3. After 25 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)?
%
4. After 25 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%
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Required:
5. What is the annual payment (round to the nearest $)?
$
6. What are the total interest payments (round to the nearest $)?
$
7. After 25 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)?
%
8. After 25 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point)?
%
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