You borrow money on a self liquidating installment loan (equal…
Question Answered step-by-step You borrow money on a self liquidating installment loan (equal… 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$145,000Interest Rate16.8%Life58 yearsDate of LoanJanuary 1, 2021Use the installment method – not straight lineDo 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 23 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)? % 4. After 23 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 2%(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 23 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)? % 8. After 23 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point)? % PrevQuestion 1 of 2 Total1 of 2Visit question mapNext Accounting Business Financial Accounting ACCT MISC Share QuestionEmailCopy link Comments (0)