Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. joan messineo borrowed $10,000 at a 17% annual rat

Joan Messineo borrowed $10,000 at a 17% annual rate of interest to be repaid over 3...

70.2K

Verified Solution

Question

Finance

Joan Messineo borrowed $10,000 at a 17% annual rate of interestto be repaid over 3 years. The loan is amortized into three equal,annual, end-of-year payments.

a. Calculate the annual, end-of-year loan payment

b. Prepare a loan amortization schedule showing the interest andprincipal breakdown of each of the three loan payments.

c. Explain why the interest portion of each payment declineswith the passage of time.

Answer & Explanation Solved by verified expert
4.0 Ratings (550 Votes)
If the loan amount is P rate on interest monthly is r and loan term is n the EMI will be EMI Pr1 rn 1 rn 1 Where Loan amount P 10000 Time n 3 Interest rate r 17    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Joan Messineo borrowed $10,000 at a 17% annual rate of interestto be repaid over 3 years. The loan is amortized into three equal,annual, end-of-year payments.a. Calculate the annual, end-of-year loan paymentb. Prepare a loan amortization schedule showing the interest andprincipal breakdown of each of the three loan payments.c. Explain why the interest portion of each payment declineswith the passage of time.

Other questions asked by students

Q

A businessman in Iowa returned from a trip to Japan and a few other countries a...

Biology
Q

Q7** Examine the implications of four (4) organizational design elements on employees’ perceptions and attitudes at...

Psychology
Q

ABC Company is a leading showroom in selling branded Cars. The showroom is displaying automatic and...

General Management
Q

LO 2) Aston Corporation performs year-end planning in November of each year before its calendar year...

Accounting
Q

SB6 b Relative Frequency The Effect of Disruptive Selection on a Population of Moths Smaller...

Biology
Q

17 What are the structural differences between RNA and DNA

Biology
Q

No GFP 100 25 10 4 2 Counts Counts Counts Counts 50 100 0 10...

Biology
Q

What is the output when you subset a numeric vector at an index greater than...

Statistics
Q

Blackwelder Factory produces two similar products: small table lamps and desk lamps. The total factory...

Accounting
Q

X Co owns 80% of the voting common shares of Y Co.Non-controlling interest was assigned...

Accounting
Q

Question 13 (3 points) Which of the following is FALSE regarding US T-bill auctions? The...

Finance
Q

Cullumber Corporation purchased a patent for $153000 on September 1, 2016. It had a useful...

Accounting