Tak took out a loan for $5,000 at 4% interest. To repay the loan he must...

Tak took out a loan for $5,000 at 4% interest. To repay the loan he must make a payment of $672.46 at the end of each year for 9 years. How much of his second payment is interest?

The question we are interested in is this: After he has made payments for 3 years, how much will he still owe?

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Expert Solution

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Dear student,

The problem is completely solved below.

I have explained how the interest and new balance is calculated after every payment.

Feel free to comment.

Colby Messinger answered 1 year ago

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