You borrow a GPM of $450,000 with annual payments and 15-year term. The interest rate is 4.5% and the payment factors from year 1 to year 15 are: 50%, 50%, 50%, 50%, 50%, 75%, 75%, 75%, 75%, 75%, 100%, …, 100%. Questions: 1. What are the annual payments for years 1 to 15? 2. What is remaining balance at the end of each year? 3. What are the interest payment and principal payment for years 1 to 15? 4. Answer the questions (1) to (3) above if annual payment is changed to monthly payment.
You borrow a GPM of $450,000 with annual payments and 15-year term. The interest rate is 4.5% and the payment factors from year 1 to year 15 are: 50%, 50%, 50%, 50%, 50%, 75%, 75%, 75%, 75%, 75%, 100%, …, 100%. Questions: 1. What are the annual payments for years 1 to 15? 2. What is remaining balance at the end of each year? 3. What are the interest payment and principal payment for years 1 to 15? 4. Answer the questions (1) to (3) above if annual payment is changed to monthly payment.
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 17P
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Question
You borrow a GPM of $450,000 with annual payments and 15-year term. The interest rate is 4.5% and the payment factors from year 1 to year 15 are: 50%, 50%, 50%, 50%, 50%, 75%, 75%, 75%, 75%, 75%, 100%, …, 100%.
Questions:
1. What are the annual payments for years 1 to 15?
2. What is remaining balance at the end of each year?
3. What are the interest payment and principal payment for years 1 to 15?
4. Answer the questions (1) to (3) above if annual payment is changed to monthly payment.
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