Answer:
$13,800
Explanation:
Loan Payment = $300,000
Annual Interest rate includes the real interest and inflation effect in it. As 2% is already included in the calculation of 4.6% so, we will charge 4.6% to the principal amount.
Interest Payment = $300,000 x 4.6% = $13,800
As the payment is made each year, so there is no compounding effect to the interest payment and Interest payment will remain constant every year. The value of Interest payment at the end of fourth year is $13,800.
