Annual payment will be used to reduce principal balance

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Sunrise Coffee just borrowed $160,000 to build a new shop. This mortgage calls for equal annual payments at the end of each year. The loan is for 20 years at an APR of 8.15 percent. How much of the first annual payment will be used to reduce the principal balance? A. $1,304.00 B. $1,863.20 C. $2,196.88 D. $2,878.68 E. $3,438.68

Reference no: EM131354515

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Annual payment will be used to reduce principal balance : Sunrise Coffee just borrowed $160,000 to build a new shop. This mortgage calls for equal annual payments at the end of each year. The loan is for 20 years at an APR of 8.15 percent. How much of the first annual payment will be used to reduce the prin..

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