The payment necessary to amortize a 6.5% loan of $77,000 compounded annually, with 5 annual payments is $18,528.86. The total of the payments is $92,644.30 with a total interest payment of $15,644.30. The borrower made larger payments of $19,000.00. Calculate (a) the time needed to pay off the loan, (b) the total amount of the payments, and (c) the amount of interest saved.
The payment necessary to amortize a 6.5% loan of $77,000 compounded annually, with 5 annual payments is $18,528.86. The total of the payments is $92,644.30 with a total interest payment of $15,644.30. The borrower made larger payments of $19,000.00. Calculate (a) the time needed to pay off the loan, (b) the total amount of the payments, and (c) the amount of interest saved.
Chapter6: Exponential And Logarithmic Functions
Section: Chapter Questions
Problem 5RE: A retirement account is opened with an initialdeposit of 8,500 and earns 8.12 interest compounded...
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The payment necessary to amortize a 6.5% loan of $77,000 compounded annually, with 5 annual payments is $18,528.86. The total of the payments is $92,644.30 with a total interest payment of $15,644.30. The borrower made larger payments of $19,000.00. Calculate (a) the time needed to pay off the loan, (b) the total amount of the payments, and (c) the amount of interest saved.
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