Given the following information, if the loan is paid by a uniform annual payment

Question

Given the following information, if the loan is paid by a uniform annual payment scheme, determine the value of A, B, and C.

loan principle= 10,000
interest rate 8% per year compounded annually
duration of loan= 3 years

EOY: 1 2 3
Interest paid: 800 553.60 B=?
Principle Payment: A=? 3326.40 C=?

Please show all work, so I can learn how to solve this step by step, thank you.

Explanation / Answer

From EDY2 , annual payment = 553.6 + 3326.4 = 3880 ($) so, for EDY1, 800+A = 3880 => A = 3080 (ANSWER) for EDY3, principal due, C = 10000- (3080+3326.4) = 3593.6 ($) (ANSWER) so, B + C = B + 3593.6 = 3880 => B = 3880- 3593.6 = 286.4 ($) (ANSWER)

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