Safari File Edit View History Bookmarks Window Help 4) 99% CD ?us. Sun 7:58 PM O

Question

Safari File Edit View History Bookmarks Window Help 4) 99% CD ?us. Sun 7:58 PM OE newconnect.mheducation.com Exam 2: Ch5,6,7 6 Saved Help Save & Exit Submit A $200,000 loan amortized over 11 years at an interest rate of 10% per year requires payments of $21,215.85 to completely remove the loan when interest is charged on the unrecovered balance of the principal. If interest is charged on the original principal instead of the unrecovered balance, what is the loan balance after 11 years provided the same $21,215.85 payments are made each year? 01:47:28) The loan balance is $ Mc Graw Hill 28 of 30

Explanation / Answer

Amount of loan 200,000 Simple interest of 10% for 11yrs 220000 (200,000*10%*11yrs) Total Amount 420000 Less: Annual Payment made for 11yrs 233,374 ($ 21215.85*11) Balance in Loan account 186,626

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