You wish to borrow $3,000 for three years at 8% interest rate. The loan agreement calls for the borrower to pay the interest on the loan balance each year and to reduce the loan balance each year by $1000. What is the total interest payment over the whole life of the loan?
Solution :
The total interest payment over the whole life of the loan = $ 480
Please find the attached screenshot of the excel sheet containing the detailed calculation for the solution.
Get Answers For Free
Most questions answered within 1 hours.