Abank just approved your small business loan for $25,000. the loan has an interest rate of 10.5% and will be repaid with 10 end-of-year payments. what is the required annual loan payment? $4,271.33 $2,980.59 $4,156.43 $3,116.40 $3,254.91 halfway through the loan's life, what is the loan’s remaining balance? $11,122 $17,513 $11,901 $13,339 $15,557 what percentage of the total payments made during the first five years will be made toward interest? 45.66% 52.93% 41.53% 54.56% 49.44%

Ans. A) The required annual loan payment is $4,156.43; B) Halfway through the loan's life, the loans balance is $15,557 C) Percentage of the total payments toward interest is 54.56%

Explanation:

Hi, well in order to find out the required annual loan payment, we have to use the following formula and solve for A.

Therefore

Now, half way through the loan´s life, we still have 5 payments to make, therefore the remaining balance is found by bringing to present value those 5 yearly payments, using the same equation mentioned above, this should look like this.

In order to find the percentage torward interest of the total payments made in the first 5 years, we had to make an amortization table (please see the attachments) so we found this

Interest (first 5 years)    $11,339.10  

total pmt (first 5 years)    $20,782.17  

% of total PMTs torward interest  54.56%

This percentage was found by: (11,339.10/20,782.17)*100=54.56%

Best of luck

It is important for the military to be able to evacuate supplies when necessary because then they can ensure the supplies will be safe the same with people. they do this during a war, major storms, and when plagues happen.