complete parts a, b, and c for the loan described below (a) Find the payment nec
ID: 2480109 • Letter: C
Question
complete parts a, b, and c for the loan described below (a) Find the payment neccessary to amortize the loan. (b) Find the total payments and the total amount of interest paid based on the calculated annual payments (c) creat an amortization table and find the total payments and total amount of interest paid based upon the amortization table. A 7% loan of $80,000 compunded annually, with 5 annual payments.(a) The annuel payment needed to amortize this loan is.... (round to the nearest cent as needed) complete parts a, b, and c for the loan described below (a) Find the payment neccessary to amortize the loan. (b) Find the total payments and the total amount of interest paid based on the calculated annual payments (c) creat an amortization table and find the total payments and total amount of interest paid based upon the amortization table. A 7% loan of $80,000 compunded annually, with 5 annual payments.
(a) The annuel payment needed to amortize this loan is.... (round to the nearest cent as needed)
(a) The annuel payment needed to amortize this loan is.... (round to the nearest cent as needed)
Explanation / Answer
PVAF for 5 years @7%=1/1.07+1/1.072+1/1.073+1/1.044+1/1.045=4.1
annuel payment needed to amortize this loan is=Total Loan/PVAF for 5Years @7%=$80,000/4.1=$19,512
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