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Five years ago you took out a 10-year amortizing loan to purchase an apartment. The loan...

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Finance

Five years ago you took out a 10-year amortizing loan topurchase an apartment. The loan has 4.0% APR with monthly paymentsof $1,800. How much do you owe on the loan today?

The remaining loan balance is $________.(round to the nearest dollar)

How much interest did you pay on the loan in the past year?

The interest paid in year five was $______.(round to the nearest dollar)

Over the entire period of 10 years, how much interest will youhave paid on the loan?

The total amount of interest paid on the loan will be$_______. (round to the nearest dollar)

Answer & Explanation Solved by verified expert
4.3 Ratings (926 Votes)
1First we calculate the original loan amount using PV functionin Excel rate 412 converting annual rate into monthly ratenper 1012 10 year loan with 12 monthly payments eachyearpmt 1800 Monthly payment This is entered with a negativesign because it is a paymentPV is calculated to be    See Answer
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Transcribed Image Text

Five years ago you took out a 10-year amortizing loan topurchase an apartment. The loan has 4.0% APR with monthly paymentsof $1,800. How much do you owe on the loan today?The remaining loan balance is $________.(round to the nearest dollar)How much interest did you pay on the loan in the past year?The interest paid in year five was $______.(round to the nearest dollar)Over the entire period of 10 years, how much interest will youhave paid on the loan?The total amount of interest paid on the loan will be$_______. (round to the nearest dollar)

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