Loan Consolidated Incorporated (LCI) is offering a specialone time pac...

â€ƒLoan Consolidated Incorporatedâ€‹ (LCI) is offering a specialâ€‹ one-time package to reduce Customâ€‹ Autos' outstanding bills...

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Finance

â€ƒLoan Consolidated Incorporatedâ€‹ (LCI) is offering a specialâ€‹one-time package to reduce Customâ€‹ Autos' outstanding bills to oneâ€‹easy-to-handle payment plan. LCI will pay off the currentoutstanding bills of â€‹$244,000 for Custom Autos if Custom Autoswill make an annual payment to LCI at an interest rate of 11% overthe next 5 years.â€ƒâ€ƒ
a.â€ƒWhat are the annual payments of theâ€‹ loan?
b. What is the amortization schedule for this loan if CustomAutos wants to pay off the loan before the loan maturity in
5 years?
c. When will the balance be half paidâ€‹ off?
d. What is the total interest expense on the loan over the 5â€‹years?
(round to the nearest cent)

Answer & Explanation Solved by verified expert

4.0 Ratings (671 Votes)

A outstanding amount P 244000 Interest rate annual is 11 or 011 TOTAL years n 5 Equal annual payments for loan formula P i 1in1in1 24400001110115101151 6601916 So annual Payment See Answer

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