You receive a $18,000 4-year constant payment loan (CPL). The loan's annual interest rate is 7%....
You receive a $18,000 4-year constant payment loan (CPL). The loan's annual interest rate is 7%. What is the principal portion of the total payment in year 4, rounded to the nearest dollar?
Homework Answers
Principal portion in year 4 = $4768.10
The table is as below
| Year | Opening Balance | Annual payment | Principal | Interest |
| 1 | 18000 | $4,958.82 | $4,238.82 | 720 |
| 2 | $13,761.18 | $4,958.82 | $4,408.37 | 550.4472 |
| 3 | $9,352.81 | $4,958.82 | $4,584.71 | 374.1122 |
| 4 | $4,768.10 | $4,958.82 | $4,768.10 | 190.7239 |
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