Amortization. loan consolidated incorporated (LCI) is offering a special one time package to reduce custom Auto's...

Amortization. loan consolidated incorporated (LCI) is offering a special one time package to reduce custom Auto's outstanding Bill's to easy to handle payment plan. LCI will pay off the current outstanding Bill's of $230,000 for custom Autos if custom Autos will make an annual payment to LCI at an interest rate of 7% over the next 5 years?

A) what are the annual payments of the loan?

B) what is the amortization schedule for this loan if custom Autos wants to pay off the loan before the loan maturity in 5 years?

C) when will the balance be half paid off?

D) what is the total interest expense on the loan over the 5 years?

Expert Solution

jeff jeffy answered 1 year ago

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