Question 1124636
i used the following online calculator.


<a href = "https://arachnoid.com/finance/" target = "_blank">https://arachnoid.com/finance/</a>


this allowed me to determine what the payments needed to be at the end of each year.


the payments required at the end of each year are 1777.75.


the following spreadsheet shows the year by year calculations.


<img src = "http://theo.x10hosting.com/2018/092901.jpg" alt="$$$" >


at end of year 1, the remaining balance of $4500 from the end of year 0 is multiplied by 9% to get the interest charge of $405.


this is added to the remaining balance of $4500 from the end of year 0 and then the annual payment of $1777.75 is subtracted from that to get the remaining balance of $3127.25 at the end of year 1.


at the end of year 3, the remaining balance of $1630.96 from the end of year 2 is multiplied by 9% to get the interest charge of $146.79.


this is added to the remaining balance of $1630.96 from the end of year 2 and then the annual payment of $1777.75 is subtracted from that to get the remaining balance of $0.00 at the end of year 3.


the loan is fully paid of by the end of year 3.


your solution is that the interest paid in the third year is $146.79.