Alpha Company Has Arranged to Borrow $30,000 for 8 Years

question 5

Essay

Alpha Company has arranged to borrow $30,000 for 8 years at an annual interest rate of 6%.Annual payments of $4,831.08 will be made.When Alpha makes its first payment at the end of the loan's first year:
1.how much of the payment will be interest?
2.how much of the payment will be used to reduce the principal of the loan?

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