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 Loan Consolidated Incorporated​ (LCI) is offering a special​ one-time package to reduce Custom​ Autos' outstanding bills...

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Finance

 Loan Consolidated Incorporated​ (LCI) is offering a special​one-time package to reduce Custom​ Autos' outstanding bills to one​easy-to-handle payment plan. LCI will pay off the currentoutstanding bills of ​$244,000 for Custom Autos if Custom Autoswill make an annual payment to LCI at an interest rate of 11% overthe next 5 years.  

a. What are the annual payments of the​ 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 paid​ off?

d. What is the total interest expense on the loan over the 5​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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