What equal annual payments must be made to discharge loan

Assignment Help Finance Basics

Reference no: EM132082398

Question: Your uncle borrows $68,000 from the bank at 10 percent interest over the eight-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.)

Reference no: EM132082398

Questions Cloud

Constitutional limitations on the authority of public health : Discus the impact of constitutional limitations on the authority of public health and other government agencies to impose actions on individuals

Gravitational acceleration depends on distance : You must take into account that the gravitational acceleration depends on distance between the object and the center of the earth.

Productivity is associated with the process improvement : What increase (i.e., percent increase) in productivity is associated with the process improvement?

How the evolution of crime fighting may affect social policy : The potential for specific crime-fighting methodologies, such as using biometrics, implementing cybercrime spyware, or mandating DNA collection programs.

What equal annual payments must be made to discharge loan : 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).

Intensity of the solar radiation : What is the value for the intensity at Mercury's orbital distance, which is 38.7% the distance to the sun that the Earth is.

Legal requirements for equal employment opportunity : In what way is Walmart trying to meet legal requirements for equal employment opportunity?

Transitioning from management to leadership paradigm : explain what you believe is the key to transitioning from a management to a leadership paradigm. Why is this important?

Explain the difference between gross sales and net sales : What types of accounts are (or...how do we classify) Sales Discounts and Sales Returns and Allowances? Explain the difference between Gross Sales and Net Sales.

User Account

All Pages