100k debt in 48 months at 14%, payment for the first 2 years

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Zaiheinles

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You borrowed $100,000 for four years at 14% interest on your outstanding balance. The principal amount is returned in equal installments at the end of each year. Determine how much will be repaid in the first two years.
 
Zaiheinles said:
You borrowed $100,000 for four years at 14% interest on your outstanding balance. The principal amount is returned in equal installments at the end of each year. Determine how much will be repaid in the first two years.
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In your previous 2 posts you did not show work - none here either!

Some very "helpful" questions were asked by our tutors - you refused to answer.

Why do you think we should try to help you despite your unresponsiveness??
 
Zaiheinles said:
You borrowed $100,000 for four years at 14% interest on your outstanding balance. The principal amount is returned in equal installments at the end of each year. Determine how much will be repaid in the first two years.
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Hint: Figure out how many years it would take to return $100,000 (including interest), then you can figure out how much per payment should be

EDIT: I missed the 4 years part. Find the level payment amount.
 
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BigBeachBanana said:
Hint: Figure out how many years it would take to return $100,000 (including interest), then you can figure out how much per payment should be.
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Yes, I already calculated differently, as a result, as I understand it, every year we will pay 25k of the debt + tax on top, but the tax itself should not interest me, because the question is precisely how much we paid off in the first 2 years, and it turns out exactly 50% or am I wrong?
 
Zaiheinles said:
Yes, I already calculated differently, as a result, as I understand it, every year we will pay 25k of the debt + tax on top, but the tax itself should not interest me, because the question is precisely how much we paid off in the first 2 years, and it turns out exactly 50% or am I wrong?
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[math]100,000=\frac{X}{1.14}+\frac{X}{(1.14)^2}+\frac{X}{(1.14)^3}+\frac{X}{(1.14)^4}[/math]Find X, the level payment amount. Hint: It's a geometric series.
 
Zaiheinles said:
Yes, I already calculated differently, as a result, as I understand it, every year we will pay 25k of the debt + tax on top, but the tax itself should not interest me, because the question is precisely how much we paid off in the first 2 years, and it turns out exactly 50% or am I wrong?
Click to expand...
If you have quoted the problem correctly, you are correct that you will have repaid 50% of the principal after two years, but that is not what you will have paid in total.
 
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