The hotel you manage just purchased a new piece of property that is financed with a $250,000 amortized loan. If this loan is to be paid off in 4 equal, end-of-the-year annual payments and has an interest rate of 10.00%, how much of the third year's payment goes toward paying principal? (Ch. 5)

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
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The hotel you manage just purchased a new piece of property that is financed with a $250,000 amortized loan. If this loan is to be paid off in 4 equal, end-of-the-year annual payments and has an interest rate of 10.00%, how much of the third year's payment goes toward paying principal? (Ch. 5)

Group of answer choices
$48,884.94
$62,500.00
$78,867.70
$58,661.93
$65,179.92
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