Question

Times New Roman12 A"AHEE D16 수 1 Pay interest-the rate of 8% per year for 4 years and then a final payment of merest and principal a teed fte se year 2. 3 Amount 4 Period (years) S Interes rate 300,000 8% 8 Anmual Interest Payment- 9 Year 5 Payment 12 13 14 15 asl 17 Investor #2 offers you the $300,000 paying interest at the rate of 8% per year for 4 years and then a final payment of interest and principal at the end of the 5th year. find annual interest payment year 5 payment, total payment and interest paid

show all the steps followed in Excel

Answer 1

Amount of final payment and interest :
		Formula
Principle amount	$300,000
Interest rate	8%
Period (years)	5
Interest paid	$120,000	b3*b4*b5
Maturity Amount	$420,000	b3+b6