Question: your uncle borrows 61000 from the bank at 11 percent...
Question details
Your uncle borrows $61,000 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.)
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