bob borrows $10,000 to be paid back over 30 years with level end of your year...

bob borrows $10,000 to be paid back over 30 years with level end of your year payments at an annual interest rate of x. The sum of principal repayment during year five and year 10 is equal to the amount of principle repaid during the year 15. find x

Solutions

Expert Solution

x=10.103%

Payment	Loan beginning balance	Payment	Interest payment	Principal payment	Loan ending balance
1	10000	$1,069.88	$1,010.26	$59.62	$9,940.38
2	$9,940.38	$1,069.88	$1,004.23	$65.65	$9,874.73
3	$9,874.73	$1,069.88	$997.60	$72.28	$9,802.45
4	$9,802.45	$1,069.88	$990.30	$79.58	$9,722.87
5	$9,722.87	$1,069.88	$982.26	$87.62	$9,635.25
6	$9,635.25	$1,069.88	$973.41	$96.47	$9,538.78
7	$9,538.78	$1,069.88	$963.66	$106.22	$9,432.56
8	$9,432.56	$1,069.88	$952.93	$116.95	$9,315.62
9	$9,315.62	$1,069.88	$941.12	$128.76	$9,186.85
10	$9,186.85	$1,069.88	$928.11	$141.77	$9,045.08
11	$9,045.08	$1,069.88	$913.78	$156.09	$8,888.99
12	$8,888.99	$1,069.88	$898.02	$171.86	$8,717.12
13	$8,717.12	$1,069.88	$880.65	$189.23	$8,527.90
14	$8,527.90	$1,069.88	$861.54	$208.34	$8,319.55
15	$8,319.55	$1,069.88	$840.49	$229.39	$8,090.16
16	$8,090.16	$1,069.88	$817.31	$252.57	$7,837.60
17	$7,837.60	$1,069.88	$791.80	$278.08	$7,559.52
18	$7,559.52	$1,069.88	$763.70	$306.17	$7,253.34
19	$7,253.34	$1,069.88	$732.77	$337.11	$6,916.24
20	$6,916.24	$1,069.88	$698.72	$371.16	$6,545.08
21	$6,545.08	$1,069.88	$661.22	$408.66	$6,136.42
22	$6,136.42	$1,069.88	$619.94	$449.94	$5,686.48
23	$5,686.48	$1,069.88	$574.48	$495.40	$5,191.08
24	$5,191.08	$1,069.88	$524.43	$545.45	$4,645.63
25	$4,645.63	$1,069.88	$469.33	$600.55	$4,045.08
26	$4,045.08	$1,069.88	$408.66	$661.22	$3,383.86
27	$3,383.86	$1,069.88	$341.86	$728.02	$2,655.83
28	$2,655.83	$1,069.88	$268.31	$801.57	$1,854.26
29	$1,854.26	$1,069.88	$187.33	$882.55	$971.71
30	$971.71	$1,069.88	$98.17	$971.71	$0.00

jeff jeffy answered 1 year ago

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