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Hunter-Best [27]
3 years ago
6

A loan of $50,000 is to be repaid in 8 equal end-of-year payments at 10% a. After 3 years, how much of the loan would be paid? b

. How much would it cost to buy down the interest to 9%?​
Mathematics
1 answer:
Aneli [31]3 years ago
4 0

Answer:

a)  = 13550 paid  by end yr 3                                                                                 b) 36450 * 0. 01 = $364.5 buy down interest by 1%

Step-by-step explanation:

50000 * 0.10 = 5000 paid yr 1 = 5000 /8 = 625 per payment   45000 * 0.10 = 4500 paid yr2  40500 *0. 10 = 4050 paid 40500-4050= 36450 left to pay 50000-36450 = 13550 paid    b) 36450 * 0. 01 = $364.5 buy down interest by 1%

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