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How much is the principal reduction in the second year

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Question - A 10-year annuity providing a rate of return of 3.6% compounded quarterly was purchased for $25,000. The annuity makes payments at the end of each quarter.

a. How much of the 25th payment is interest?

b. What is the principal portion of the 13th payment?

c. What is the total interest in Payments 11 to 20 inclusive?

d. How much is the principal reduction in the second year?

e. What is the final payment?

Reference no: EM132588462

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