Problem:
On 10/1/05, the ACCT300 Commissioner authorized a special loan agreement with Astros Co, whereby Astros Co would borrow $125,000 at 9% interest. Conditions of tthe agreement require the repayment of the loan with 7 annual payments, beginning 10/1/06, in the following amounts
Payment Number Payment Amount
1 25,000
2 25,000
3 25,000
4 ???
5 20,000
6 15,000
7 10,000
Compute the :
1) balance of the loan at 10/1/08, immediately after the 3rd payment
2) balance of the loan at 10/1/09, immediately after the 4th payment
3) amount of the 4th payment
4) amount that the balance of the loan decreases between 10/1/06 and 10/1/07
5) amount fo interest incurred by Astros Co between 10/1/10 and 10/1/11