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Thanks for the help. The process is correct. For part b for those who are slightly confused. 1 )
Interest Payment = (Remaining Loan Balance) * (Interest Rate in decimal form) 2) Principle
Payment = (Capital Recovery Factor [answer from part A]) - (Interest Payment) 3) Remaining
Loan Balance = (Remaining Loan balance) - (Principle Payment)

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  • 1. Thanks for the help. The process is correct. For part b for those who are slightly confused. 1 ) Interest Payment = (Remaining Loan Balance) * (Interest Rate in decimal form) 2) Principle Payment = (Capital Recovery Factor [answer from part A]) - (Interest Payment) 3) Remaining Loan Balance = (Remaining Loan balance) - (Principle Payment)