An important application of interest involves amortized loans. Some common types of amortized loans are automobile loans, home mortgage loans, and business loans. Each on poyment consists of interest and repayment of principal. This breakdown is often developed in an amortization schedule. Interest ist in the first period and Select over the life of the loan, while the principal repayment is Select in the first period and it let thereafter Quantitative Problem: You need $13,000 to purchase a used car. Your wealthy unde is willing to lend you the money as an ansortized loan. He would Moe you to make annual payments for 4 years, with the first payment to be made one year from today. He requires a 6% annual return. a. What will be your annual loan payments? Do not round intermediate calculations. Round your answer to the nearest rek S b. How much of your first payment will be applied to interest and to principal repayment? Do not round intermedute calculations. Round your answers to the nearest cent Interest: S Principal repayment: $ 10. 10: Time Value of Money: Amortized Loans An important application of interest involves amortized loans. Some common types of amortized bans are automobile lans, home mortgage leans, and business loans. Each o payment consists of interest and repayment of prinopal. This breakdown is often developed in an amortization schedule, terest i in the first period and tec over the le of the loan, while the principal repayment is Sale in the first period and i Select there Quantitative Problem: You need $13,000 to purchase a used car. Your wealthy onde is willing to lend you the money as an amortized lown. He woul years, with the first payment to be made one year from today. He requires a 6% annual return you to make annual payments for 4 a What will be your annual loan payment? Do not round intermediate calculations Round your answer to the nearest cont medete calculations. Round your wriswers to the nearest cent b. How much of your first payment Interest: S be applied to interest and to principal repayment? Da not round Principal repayment: $ Grade it Now Save & Continue Continue without saving