Business, 19.06.2020 14:57 shymitch32
If your uncle borrows $69,000 from the bank at 11 percent interest over the nine-year life of the loan. Use Appendix 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.)
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.)
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.)
Answers: 2
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If your uncle borrows $69,000 from the bank at 11 percent interest over the nine-year life of the lo...
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