You are about to borrow $15,000 from a bank at an interest rate of 8% compounded annually. You are required to make three equal annual repayments in the amount of $5,820.50 per year, with the first repayment occurring at the end of year 1. Show the interest payment and principal payment in each year. paying it off in 3 years
You are about to borrow $15,000 from a bank at an interest rate of 8% compounded annually. You are required to make three equal annual repayments in the amount of $5,820.50 per year, with the first repayment occurring at the end of year 1. Show the interest payment and principal payment in each year. paying it off in 3 years
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
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Q) You are about to borrow $15,000 from a bank at an interest rate of 8% compounded annually. You are required to make three equal annual repayments in the amount of $5,820.50 per year, with the first repayment occurring at the end of year 1. Show the interest payment and principal payment in each year. paying it off in 3 years.
Fill in the table below. (Round to the nearest cent.)
End of Year |
Principal Repayment |
Interest payment |
Remaining Balance |
---|---|---|---|
0 |
$15000 |
1 |
|
|
|
Solve this early i upvote.
Handwriting or typed answer provide me not solve in excel.
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