For each of the following loan options (a & b) compute the following values: ? annual loan...

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For each of the following loan options (a & b) compute thefollowing values:
? annual loan payment
? proportion of principle and interest in the first annualpayment
? total interest paid over the entire time line of the loan
? total principal paid over the entire time line of the loan
a. You have decided to purchase a capital asset using an 850,000at a rate of 8% for 25 years.
b. You have decided to purchase a capital asset for 850,000 at arate of 7% for 15 years.
c. Which option would you take and why? Explain.

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4.3 Ratings (832 Votes)

In the first case Principal amount 850000 Time 25 Years Rate of Interest 8 Simple Interest that needs to be paid after the term of 25 Years 850000825100 1700000 This See Answer

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