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5. You are about to sign a loan agreement with a local bank. The terms are as follows: Loan date Maturity date Loan type Annual

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5. You are about to sign a loan agreement with a local bank. The terms are as follows: Loan date Maturity date Loan type Annual payment Annual interest rate Term Payments Dec. 31, 2018 Dec. 31, 2022 Amortizing $2,886 6% 4 years Annual a. Assume annual payments are made at the end of each year. Compute the principal amount of the loan (round to the nearest dollar amount). Pua - Ca (16) & F Cmt) 2886(1 - Thoon) - 19,000 b. Complete the amortization table for this loan in the space provided below. Year Payment Interest Principal Year-End Balance 10.000.24 2018 20212886 2019 2866 60ool 2288.99 77163 2020 2866 462.68 2423.32 5287,98 317.28 2568.7 27 19.26 2022 2916 163.15 2722.8 (-3,58) paid- c. If your firm were to pre-pay this loan at the very beginning of 2021, what would b the amount of the payment? 85287.98

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