On October 1st, Rogers bought a house for $350,000. He paid $50,000 in cash at the time of the purchase and agreed to pay the balance in four equal annual installments that include both the principal and 8 percent interest on the declining balance.
Required:
a) Determine the amount of the annual payment.
b) Determine the total dollars of interest that Rogers will pay for this loan.
c) Determine the amount of interest that is included in the first payment. It is not necessary to complete an amortization schedule.