What is the annual payment

Assignment Help Financial Accounting

Reference no: EM133443816

Question: 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	$408,000
Interest Rate	13.3%
Life	66 years
Date of Loan	January 1, 2023

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 37 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)?

4. After 37 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 37 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)?

8. After 37 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point)?

Reference no: EM133443816

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