A loan of £16,000 is repayable by six equal annual payments with the first payment to be made in one years' time. The loan earns interest at a rate j = 4%. Construct a complete amortization schedule for the loan facility hence determine: i. The interest element of the 2nd payment. The principal element of the 5th payment. The principal repaid in the last 3 years of the loan. ii. 111. ) The total interest paid over the whole loan amount.
A loan of £16,000 is repayable by six equal annual payments with the first payment to be made in one years' time. The loan earns interest at a rate j = 4%. Construct a complete amortization schedule for the loan facility hence determine: i. The interest element of the 2nd payment. The principal element of the 5th payment. The principal repaid in the last 3 years of the loan. ii. 111. ) The total interest paid over the whole loan amount.
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 20P
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Transcribed Image Text:Question Three
A loan of £16,000 is repayable by six equal annual payments with the first payment to be
made in one years' time. The loan earns interest at a rate j = 4%. Construct a complete
amortization schedule for the loan facility hence determine:
i.
The principal element of the 5th payment.
The principal repaid in the last 3 years of the loan.
The interest element of the 2nd payment.
ii.
111.
N) The total interest paid over the whole loan amount.
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