Amortizing Loan

Consider a 4-year amortizing loan. You borrow $495,000 initially, and repay it in four equal annual year-end payments.

a.	If the interest rate is 2.51%, calculate the annual payment. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Annual payment

$

b.	Prepare an amortization schedule. (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Round your answers to 2 decimal places.)

Time	Loan Balance			Year-End Interest Due on Balance			Year-End Payment			Amortization of Loan
0	$			$			$			$
1
2
3
4

c-1.	What is the loan balance at the end of year 1? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Loan balance

$

c-2.	Is it the present value of the remaining loan payments?