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20 February, 03:59

You borrowed $30,000 at a rate of 8% and must repay it in three equal installments at the end of each of the next 3 years. How large would your payments be; how much of the first payment would represent interest, how much would be principal

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  1. 20 February, 04:23
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    In order to solve this problem we will perpere the amortization schedule

    As follows

    Year Amount Interest 3 Equal Total Closing

    8% Instalment Payment Amount

    1 30000 2400 10000 12400 20,000

    2 20,000 1600 10000 11600 10,000

    3 10,000 800 10000 10800 -
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