SOLUTION: 1. A 190,000 loan is to be amortized by annual payments of ₱14,000 and
a smaller payment a year after the last full payment. If money is worth
10% effective,
a. make an amor
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-> SOLUTION: 1. A 190,000 loan is to be amortized by annual payments of ₱14,000 and
a smaller payment a year after the last full payment. If money is worth
10% effective,
a. make an amor
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Question 1194196: 1. A 190,000 loan is to be amortized by annual payments of ₱14,000 and
a smaller payment a year after the last full payment. If money is worth
10% effective,
a. make an amortization table.
b. what is the outstanding balance after the eight payments?
c. what part of the ninth payment goes to the payment of the
interest?
d. What part of the ninth payment goes to the payment of the
principal?
e. Find the smaller final payment.
f. Find the total interest paid for the debt. Answer by Theo(13342) (Show Source):
You can put this solution on YOUR website! with payments of 14,000 at the end of each year, the remaining balance will never go down to 0 because the interest charged is greater than the payment.
i looked at what payment would make more sense and came up with 34,000.
using that, i get the following.
payments were 34000 at the end of each year except for the end of the 9th year.
at the end of the 9th year, the payment was 20307.84635...
the reason?
payment of 34000 at the end of the 9th year would have made the balance equal to -13692.15365.
to get the remaining balance to 0, that 13692.15365 had to be subtracted from the payment to get final payment of 20307.84635....
here's what the excel display looks like.
let me know if you have any questions.
theo
