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Consider a 4-year amortizing loan. You borrow $1,400 initially and repay it in four equal annual year-end payments. a. If the interest rate is 9%,
Consider a 4-year amortizing loan. You borrow $1,400 initially and repay it in four equal annual year-end payments. |
a. | If the interest rate is 9%, what is 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 Loan Balance, $ | Total Year-End Payment, $ | Amortization of Loan, $ | |||||
1 | |||||||||
2 | |||||||||
3 | |||||||||
4 | |||||||||
5 | |||||||||
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