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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Authors: Frederic Mishkin
5th Edition
0134734203, 978-0134734200
