Question

Problem Statement: Suppose you borrow $ 2500 at 4% annual interest that you plan to repay in four equal annual payments. How much will the annual payment be? How much of each payment is interest? Solution: Include the decimal point if needed. Round to the hundredth of a decimal point. What is the 3rd interest payment and the 3rd principle payment? Pmt 3 Beg Prin $1298.99 Int Pmt $ Prin Pmt $ End Prin $662.22

Answer 1

Based on the above calculations, repayment schedule will be as follows Installment Opening EMI 1 2,500.00 688.73 2 1,911.27 688.73 3 1,299.00 688.73 4 662.24 688.73 Int 100.00 76.45 51.96 26.49 Principal Closing 588.73 1,911.27 612.27 1,299.00 636.77 662.24 662.24 So the 3rd Installment principle payment will be $ 636.77 & interest payment will be $ 51.96