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 $853,000
Interest Rate 14. 2%
Life 46 years
Date of Loan January 1, 2021
What is the annual payment (round to the nearest $)?
$
2. What are the total interest payments (round to the nearest $)?
$
3. After 28 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)?
%
4. After 28 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 3%
(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 28 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)?
%
8. After 28 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point)?
