Mr. ABC goes to his neighborhood commercial bank and takes out a three year loan for...
Mr. ABC goes to his neighborhood commercial bank and takes out a three year loan for $36,000.
The loan will be paid back at an annual rate of 6%. The bank lowers the rate to 5.5% during month 10.
The first 11 days of month 10 at the old rate of 6% and the remaining 19 days (Total of 30 days) at the
new rate of 5.5%. The new 5.5% is in effect for month 11 through month 19.
The bank again lowers the rate but this time from 5.5% to 5% during month 20.
The first 14 days of month 20 at the old rate of 5.5% and the remaining 16 days at the
new 5% rate (total of 30 days). Calculate the principal and interest paid during each of the 5 periods.
List your answers in EXCEL TABLE with the answers highlighted in YELLOW.
Homework Answers
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Mr. ABC goes to his neighborhood commercial bank and takes out a
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