You borrow $11,000 over a 5-year term. The loan is structured as an amortized loan with annual (end-of-year) payments and an interest rate of 5%. The annual payments are $2,540.72. How much of the second payment is a repayment of principal? Round your answer to two decimal places.
You borrow $11,000 over a 5-year term. The loan is structured as an amortized loan with annual (end-of-year) payments and an interest rate of 5%. The annual payments are $2,540.72. How much of the second payment is a repayment of principal? Round your answer to two decimal places.
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
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You borrow $11,000 over a 5-year term. The loan is structured as an amortized loan with annual (end-of-year) payments and an interest rate of 5%. The annual payments are $2,540.72. How much of the second payment is a repayment of principal? Round your answer to two decimal places.
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