Assume a five-year equal payment amortization schedule with an annual interest rate of 7% and annual payments.If the beginning principal is $8,000,then the first interest payment will be how large?
A)$560.00
B)$960.00
C)$1,219.28
D)There is not enough information to answer this question.

Question

Quizplus · Accepted Answer

The first interest payment is calculated by multiplying the initial principal by the annual interest rate: $8,000 * 7% = $560.

Assume a Five-Year Equal Payment Amortization Schedule with an Annual