China Company borrowed $20,000 at 8% for 10 years.The loan requires annual payments of $2,717.35.When China Company makes the first annual payment:
a.how much of the first payment will be interest?
b.how much of the first payment will be used to reduce the principal of the loan?

Question

Quizplus · Accepted Answer

The Answer of China Company borrowed $20,000 at 8% for 10 years.The loan requires annual payments of $2,717.35.When China Company makes the first annual payment:
a.how much of the first payment will be interest?
b.how much of the first payment will be used to reduce the principal of the loan?

China Company Borrowed $20,000 at 8% for 10 Years