Asked by Mary
Mrs. Smith borrowed $20,000 from Last National Bank. She will repay the loan with 5 annual payments and her interest rate is 14%. a) Find the amount of her annual payments. b) What is her loan balance after she has made her 3rd annual payment?
Answers
Answered by
drwls
Use the amortization tool at
http://www.bretwhissel.net/cgi-bin/amortize
The annual payment amount is 5825.67
There is also a formula you can use, but it is rather hard to memorize. You find it at
http://www.vertex42.com/ExcelArticles/amortization-calculation.html
http://www.bretwhissel.net/cgi-bin/amortize
The annual payment amount is 5825.67
There is also a formula you can use, but it is rather hard to memorize. You find it at
http://www.vertex42.com/ExcelArticles/amortization-calculation.html
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