Evaluating initial amount and later balance of loan

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Reference no: EM1329810

An amortized loan has 10 annual payments at the end of each year starting one year from now. The first 5 payments are $1000 each and the final 5 payments are $500 each. Interest is at an effective annual rate of 10%. Find each of the following:

i) the initial loan amount
ii) the outstanding balance just after the 3rd payment
iii) the interest and principal in the 4th payment
iv) the outstanding balance just after the 8th payment

Reference no: EM1329810

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