Sarah is buying a home. Her loan will be $100,000. She will make annual payments for...

Sarah is buying a home. Her loan will be $100,000. She will make annual payments for the next 30 years to retire this loan. The interest rate on the loan is 4 %.

A. How much will her annual payments be?

B. How much interest will she pay over the life of the loan?

C. How much of her first payment will be applied to principal?

D. How much will she still owe on the loan after 10 years?

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

AS ASKED BY YOU, I HAVE EXPLAINED ANSWER WITH BOTH METHODS

jeff jeffy answered 1 month ago

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