Question
In: Finance
You are borrowing $100,000 at 5% interest EAR to be repaid over 20 years in equal...
You are borrowing $100,000 at 5% interest EAR to be repaid over
20 years in equal annual payments of blended principal and
interest. Each payment is $8,024.26. Payments are to be made at the
end of each of the next 20 years. What is the interest component of
the 12th payment?
Select one:
a. $2,556.61
b. $3,298.77
c. $1,225.93
d. $2,851.75
e. None of the above
Solutions
Expert Solution
Information given are as follows :-
loan amount = 100,000
term = 20 years
5% interest
The loan repayment scedule is calculated as follows :-
The interest component of the 12th payment = 2851.75
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jeff jeffy answered 1 year agoRelated Solutions
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