A five-year loan of $25,000 at 7.2% compounded quarterly requires quarterly payments.
a) Calculate the interest component of Payment 10.
b) Calculate the principal component of Payment 13.
c) Calculate the total interest in Payments 5 to 10 inclusive.
d) Calculate the principal paid in Year 4.

Question

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The Answer of A five-year loan of $25,000 at 7.2% compounded quarterly requires quarterly payments.
a) Calculate the interest component of Payment 10.
b) Calculate the principal component of Payment 13.
c) Calculate the total interest in Payments 5 to 10 inclusive.
d) Calculate the principal paid in Year 4.

A Five-Year Loan of $25,000 at 7