$50,000 is borrowed, to be repaid in three equal, annual payments with 10% interest. Approximately how much principal is amortized with the first payment?
The loan will be repaid in 3 equal annual payment of =$20,105.74 each, which includes principal plus interest as follows:
1st. payment: Interest=$5,000.00. Principal=$15,105.75. Balance=$34,894.25
2nd. payment:,,,,,,,,,,,,=$3,489.43. ,,,,,,,,,,,,,,=$16,616.31. ,,,,,,,,,,,,,=$18,277.95
3rd. payment,,,,,,,,,,,,,,=$1,827.80,,,,,,,,,,,,,,,,=$18,277.95,,,,,,,,,,,,,,,=$0.00
