Consider a 3-year amortizing loan. You borrow $10,000 initially, and the bank wants it to be repaid in equal annual year-end payments. If the interest is 10%, compounded annually, complete the following chart (you're welcome. ;)) It might be easiest to write out the chart and its answers on your paper that shows your process: Year Beginning Loan Balance Interest Due Year-End Payment Amortization of Loan Ending Loan Balance 1 2 3