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?© BrainMass Inc. brainmass.com December 20, 2018, 6:02 am ad1c9bdddf
Cost of Building = $100,000
Down Payment = $10,000
Loan amount = $90,000 which is nothing but the PV of the annuity.
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