4 Step 1: Solve for PMT NPER RATE PV PMT FV 3 10% -5000 0 Step 2: Prepare the Amortization Table Year 1 PMT Beg Bal $0.00 $ 5,000.00 $ Int Princ Repaid Bal Rem 500.00 $ (500.00) $ 5,500.00 2 $0.00 $5,500.00 $ 550.00 $ 3 Total $ $0.00 $ 6,050.00 $ 605.00 $ (1) Int paid in second year (2) Princ repaid in first 2 years (3) Bal rem at end of Year 1 (4) Total Int Paid (550.00) $ 6,050.00 (605.00) $6,655.00 $ 1,655.00 $ (1,655.00)| $ 550.00 $ (1,050.00) $ 5,500.00