Question
Consider a 4-year amortizing loan. You borrow $308,000 initially, and repay it in four equal annual year-end payments. a. If the interest rate is 3.98%,
| Consider a 4-year amortizing loan. You borrow $308,000 initially, and repay it in four equal annual year-end payments. |
| a. | If the interest rate is 3.98%, 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? |
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Fundamentals of Database Systems
Authors: Ramez Elmasri, Shamkant Navathe
6th edition
136086209, 978-0136086208
