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Assuming payments are made at the end of each year, what is the annual payment required to retire a $50,000 loan with a term of 5 years and an interest rate of 10%; how much of this payment represents interest at the end of year 1?

a: $8,189.87; $5,000

b: $13,189.87; $5,000

c; $13,189.87; $8,189.87

d: $13,189.87; $13,189.87

e: $5,000; $5,000

 

Basic Finance, Finance

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