You borrow money on a self liquidating installment loan (equal payments at the end of each year, each payment is part principal partinterest)Loan amount$458,00012.1%59 yearsJanuary 1, 2021Interest RateLifeDate of LoanUse the installment method - not straight lineDo NOT round any interrmediate numbers.Do NOT turn this into a monthiy problem.Do NOT put in minus signs, answer all positive numbers.Required:1. What is the annual payment (round to the nearest $)?2. What are the total interest payments (round to the nearest $)?3. After 35 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)?4. After 35 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point)?%Redo the problem if the interest rate is 2%(for a well designed spreadsheet this should take 30 seconds)Required:5. What is the annual payment (round to the nearest $)?2$6. What are the total interest payments (round to the nearest $)?$7. After 35 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)?8. After 35 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point)?

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Answered: You borrow money on a self liquidating…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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