Ordinary annuity with annual payments


Please address the given questions:

Question 1. What is the future value of a 5 year ordinary annuity with annual payments of $200 evaluated at a 15% interest rate?

Question 2. You have just taken out an instalment loan for $100,000. Assume that the loan will be repaid in 12 equal monthly instalments of $9,456 and the first monthly payment will be due one month from today. How much of the third monthly payment will go toward repayment of principal?

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Finance Basics: Ordinary annuity with annual payments
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