ITEC 2600 Study Guide - Quiz Guide: Savings Account
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Q15. 1 if an amount of ,000 is deposited into a savings account at an annual interest rate of. 5%, compounded monthly, the value of the investment after 10 years can be calculated as follows Q15. 2 a loan of ,000, with an annual interest rate of 4%. Calculate: monthly payment, interest paid, principal paid at each payment period (360 intotal, the first year total principal paid, and total interest paid. Solution: 19839. 73 8805. 18: the last year total principal paid, and total interest paid. Compare with 2, think about they are so different. Solution: 611. 10 28033. 81: the total interest paid at the end of term. If people made a pre-payment of at the end of 5th year (i. e. the principal at the beginning of 61th month decreases ) . Calculate the total interest paid at the end of term (assume the total loan term is still 30 years).
