You have three year loan of 60000. the interest rate is 7% per year, and the...

You have three year loan of 60000. the interest rate is 7% per year, and the loan calls for equal annual payments. What is the amount of principal paid at the end of year 2?

Expert Solution

Amount of loan = 60,000

Interest rate =7%

Term of the loan = 3 years

Loan calls for equal payments I.e, =Amount of the loan/ Term of the loan

= 60,000/3

= 20,000

Principal paid at the end of year 2 =20,000

jeff jeffy answered 2 years ago

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