Total payment will go to repayment of principal

Assignment Help Financial Management

Reference no: EM132061322

1. If you invest $100 at the end of the year each year for three years in an account with an annual rate of return of 5% per year, compounded annually, how much will you have at the end of the three years?

$315.25

$431.01

$315.00

$115.76

2. Assume you borrow $15,000. The loan is to be fully repaid in the form of a 3 year, ordinary annuity, at an annual interest rate of 8%. How much of the first year's total payment will go to repayment of principal? (This basic loan information will be used in another question.)

$5,820.50

$1,200.00

$4,620.50

$10,379.50

Reference no: EM132061322

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