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Prepare an amortization schedule for a three-year loan of $63,000. The interest rate is 10 percent per year, and the loan calls for equal annual payments. How much total interest is paid over the life of the loan?

Respuesta :

mathmate
Present value, P=63000interest rate, i = 10% compounded annuallyNumber of periods, n = 3 years
For equal payments, [tex]A=\frac{P(i*(1+i)^n)}{(1+i)^n-1}[/tex][tex]=\frac{63000(0.10*(1+0.10)^3)}{(1+0.10)^3-1}[/tex]
=25333.23    per annual payment to the nearest cent

Answer:

1. $104.854

2. $274.854

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