# 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.)
**