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A bank loan requires you to pay $70,000 at the end of each of the next eight years. The interest rate is 8%. a. What
A bank loan requires you to pay $70,000 at the end of each of the next eight years. The interest rate is 8%.
a. What is the present value of these payments? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Present Value:
b. Complete the following amortization table. (Negative amounts shoud be indicated by a minus sign. Round your answers to nearest whole dollar amount.)
| Year | Beginning Balance | Payment | Interest (8%) | Loan Red | Ending Balance |
| 1 | |||||
| 2 | |||||
| 3 | |||||
| 4 | |||||
| 5 | |||||
| 6 | |||||
| 7 | |||||
| 8 |
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