Question

Assume that today you borrow $25,000 from your local bank. The stated interest rate is 10%,...

Assume that today you borrow $25,000 from your local bank. The stated interest rate is 10%, compounded annually. It will be a 5 year loan. You will pay back the loan at the end of each of the next five years. Part A) What will be your annual payment be for the next five years. Part B) How much of your first payment is going toward interest? Part C) What is the outstanding principle balance after you make the first payment? Part D) How much of your second payment is going toward interest? Part E) What is the outstanding principle balance after you make the second payment?

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Answer #1

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SOLVED WITH BA II PLUS FINANCIAL CALCULATOR

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