Chapter 5, Section 2
1.
A loan of 10000 is being repaid with annual payments of 1500 for 11 years.
Calculate the amount of principal paid over the life of the loan.
2.
A loan of 10000 is being repaid with annual payments of 1500 for 11 years.
Calculate the amount of interest paid over the life of the loan.
3.
A loan is being repaid with level annual payments based on an annual effective
interest rate of 8%.
If the amount of principal in the 10th payment is 100,
calculate the amount of principal in the 5
th
payment.
4.
A loan is being repaid with level annual payments based on an annual effective
interest rate of 8%.
If the outstanding balance immediately
after
the 10 payment
is 1000, calculate the amount of interest in the 11
th
payment.
5.
A loan is being repaid with level annual payments based on an annual effective
interest rate of 8%.
If the outstanding balance immediately
before
the 10
payment is 1000, calculate the amount of interest in the 10
th
payment.
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 Fall '08
 Staff
 Math, 10%, 8%, 10 Years

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