Popeye's Fried Chicken just took out an 8 percent interest-only loan of $50,000 for three years.Payments are to be made at the end of each year.What is the amount of the payment that will be due at the end of year 3?

Name: Popeye's Fried Chicken just took out an 8 percent interest-only loan of $50,000 for three years.Payments are to be made at the end of each year.What is the amount of the payment that will be due at the end of year 3?
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Question

Quizplus · Accepted Answer

Payment _{Year 3} = $50,000 + ($50,000 × 0.08) = $54,000

Popeye's Fried Chicken Just Took Out an 8 Percent Interest-Only