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Amount of the installment payments and next year payement

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1. If I bought a building for $100,000, payable on the following terms: a $10,000 down payment and 20 equal annual installment payments to include principal and interest of 10 percent per annum:

What is the calculated amount of the installment payments and how much of the second years payments will go towards the interest payment?

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Solution Preview

Cost of Building = $100,000
Down Payment = $10,000
Loan amount = $90,000 which is nothing but the PV of the annuity.
n=20 ...

Solution Summary

This post shows how to calculate amount of the installment payments and discusses how much of the second years payments will go towards the interest payment

$2.19