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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$296,000
Interest Rate 14.2%
Life 56 years
Date of Loan January 1, 2021
Required:
Problem 1. What is the annual payment (round to the nearest $)? Problem 2. What are the total interest payments (round to the nearest $)? Problem 3. After 31 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)? Problem 4. After 31 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point)?
Problem 5. What is the annual payment (round to the nearest $)? Problem 6. What are the total interest payments (round to the nearest $)? Problem 7. After 31 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)? Problem 8. After 31 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point)?
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