Quantitative problem: you need $20,000 to purchase a used car. your wealthy uncle is willing to lend you the money as an amortized loan. he would like you to make annual payments for 4 years, with the first payment to be made one year from today. he requires a 8% annual return. what will be your annual loan payments? round your answer to the nearest cent. do not round intermediate calculations. $ 6038.4 how much of your first payment will be applied to interest and to principal repayment? round your answer to the nearest cent. do not round intermediate calculations. interest: $ principal repayment

Ans. the annual payment will be $6,038.42, applied to interest $1,600, applied to principal $4,438.42

Explanation:

Hi, in order to find the amount to be paid for 4 years, we need to use the following formula.

Where:

r= interest rate

n= periods of periodic payment

A= periodic payments

Present Value= amount of money of the loan

Everything should look like this.

Now, in order to find the amount paid in interest for the first payment, we just multiply 20,000*0.08= 1,600

And the amount paid to principal is just the payment - interest, that is:

$6,038.42 - $1,600 = $4,438.42

Best of luck.

answer; risk transference;

answer; private store;