Business, 02.05.2021 05:00, 21marmong

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 $670,000
Interest Rate 11.4%
Life 54 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 34 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)?
%
4. After 34 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 2%
(for a well designed spreadsheet this should take 30 seconds)
Required:
5. What is the annual payment (round to the nearest $)?
$
6. What are the total interest payments (round to the nearest $)?
$
7. After 34 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)?
%
8. After 34 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point)?
%

Answers: 3

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You borrow money on a self liquidating installment loan (equal payments at the end of each year, eac...