loan
Question
Your uncle borrows $64,000 from the bank at 10 percent interest over the eight-year life of the loan. UseAppendix
D for an approximate answer but calculate your final answer using the formula and financial calculator methods.
| a. | What equal annual payments must be made to discharge the loan, plus pay the bank its required rate of interest? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) |
| Annual payments | $ |
| b. | How much of his first payment will be applied to interest? To principal? (Do not round intermediate calculations. Round your final answers to 2 decimal places.) |
| First Payment | |
| Interest | $ |
| Principal | $ |
| c. | How much of his second payment will be applied to each? (Do not round intermediate calculations. Round your final answers to 2 decimal places.) |
| Second Payment | |
| Interest | $ |
| Principal | $ |
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