A five-year loan of $20,000 at 6.8% compounded quarterly requires monthly payments.
a) Calculate the interest component of Payment 47.
b) Calculate the principal component of Payment 21.
c) Calculate the interest paid in Year 2.
d) How much do Payments 40 to 45 inclusive reduce the principal balance?

Question

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The Answer of A five-year loan of $20,000 at 6.8% compounded quarterly requires monthly payments.
a) Calculate the interest component of Payment 47.
b) Calculate the principal component of Payment 21.
c) Calculate the interest paid in Year 2.
d) How much do Payments 40 to 45 inclusive reduce the principal balance?

A Five-Year Loan of $20,000 at 6