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Unformatted text preview: i i A F n EGR 102 of 2 pages Lecture HW 02 2 Problem 4 (4 pts): How much principal will be paid (subtracted from the balance) and interest will be paid in each payment on a $10,000 loan with a 6 year term at 5% interest? Assume yearly payments. Build a table showing year, interest due, total owed, payment, and balance. First, calculate annual payment: Year Interest Owed Payment Balance 0 $10,000.00 1 $500.00 $10,500.00 $1,970.17 8529.83 2 $426.49 8956.32 $1,970.17 6986.15 3 $349.31 7335.46 $1,970.17 5365.29 4 $268.26 5633.55 $1,970.17 3663.38 5 $183.17 3846.55 $1,970.17 1876.38 6 $93.82 1970.20 $1,970.20 0.00 17 . 1970 $ 1 ) 05 . 1 ( ) 05 . 1 ( 05 . 10000 $ 1 ) 1 ( ) 1 ( 6 6 n n i i i P A...
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This note was uploaded on 04/02/2012 for the course EGR 100 taught by Professor Hinds during the Fall '08 term at Michigan State University.
 Fall '08
 HINDS

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