XYZ bank has offered you a $1,000,000 5-year loan at an interest rate of 12%, requiring equal annual end-of-year payments that include both principal and interest on the unpaid balance.
You can include your excel formula details to get partial credit if case of a mistake.
a. What is the annual mortgage payment?
b. What is the total interest payment from year 1-5.
annual mortgage payment =
total interest payment =