You borrow $15,000 at 15% per year and will pay off the loan in three equal annu
ID: 1095361 • Letter: Y
Question
You borrow $15,000 at 15% per year and will pay off the loan in three equal annual payments with the first occurring at the end of the fourth year after the loan is made. The three equal annual payments will be $9.991.62. Which of the following is true for your first payment at the end of year 4?
Interest = $2,975.63
Principal = $5,712.74
Interest = $1,303.26
Principal = $8,688.37
Interest = $9,991.62
Principal = $0
Interest = $985.45
Principal = $6,569.65
Interest = $2,118.71
Principal = $6,569.65
Interest = $3,421.97
Principal = $6,569.65
Interest = $2,250.00
Principal = $7,741.62
Interest = $2,587.50
Principal = $4,967.60
Interest = $2,436.52
Principal = $7,555.10
Interest = $0.00
Principal = $9,991.62
which one should I choose?
Interest = $2,975.63
Principal = $5,712.74
Interest = $1,303.26
Principal = $8,688.37
Interest = $9,991.62
Principal = $0
Interest = $985.45
Principal = $6,569.65
Interest = $2,118.71
Principal = $6,569.65
Interest = $3,421.97
Principal = $6,569.65
Interest = $2,250.00
Principal = $7,741.62
Interest = $2,587.50
Principal = $4,967.60
Interest = $2,436.52
Principal = $7,555.10
Interest = $0.00
Principal = $9,991.62
Explanation / Answer
Amortization schedule :
Hence the principal and interest part is $6569.65 and $3421.97
Period Payment Amount Principal Part Interest Part balance Owed 1 9,991.63 6,569.66 3,421.97 16,243.47 2 9,991.63 7,555.11 2,436.52 8,688.36 3 9,991.61 8,688.36 1,303.25 0Related Questions
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