**Answer:**

Ans. A) The required annual loan payment is $4,156.43; B) Halfway through the loan's life, the loans balance is $15,557 C) Percentage of the total payments toward interest is 54.56%

**Explanation:**

Hi, well in order to find out the required annual loan payment, we have to use the following formula and solve for A.

Therefore

Now, half way through the loan´s life, we still have 5 payments to make, therefore the remaining balance is found by bringing to present value those 5 yearly payments, using the same equation mentioned above, this should look like this.

In order to find the percentage torward interest of the total payments made in the first 5 years, we had to make an amortization table (please see the attachments) so we found this

Interest (first 5 years) $11,339.10

total pmt (first 5 years) $20,782.17

% of total PMTs torward interest 54.56%

This percentage was found by: (11,339.10/20,782.17)*100=54.56%

Best of luck