$10,000 is borrowed at 10% a year interest for five years. At the end of each...

$10,000 is borrowed at 10% a year interest for five years. At the end of each year, the borrower pays interest plus 20% of the initial principal. Solve for the yearly payment and the remaining principle at the end of each year. Also, determine the total payment made over the 5 years.

Expert Solution

Year	Opening Bal	Int	Principal repay	Yearly Payment	Remaining Principal
1	$ 10,000.00	$ 1,000.00	$ 2,000.00	$ 3,000.00	$ 8,000.00
2	$ 8,000.00	$ 800.00	$ 2,000.00	$ 2,800.00	$ 6,000.00
3	$ 6,000.00	$ 600.00	$ 2,000.00	$ 2,600.00	$ 4,000.00
4	$ 4,000.00	$ 400.00	$ 2,000.00	$ 2,400.00	$ 2,000.00
5	$ 2,000.00	$ 200.00	$ 2,000.00	$ 2,200.00	$ -
Total Paid over 5 Years				$13,000.00

jeff jeffy answered 1 month ago

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