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. Consider a 5-year amortizing loan. You borrow $5,000 initially and repay it in four equal annual year-end payments. (L05-3) If the interest rate is
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. Consider a 5-year amortizing loan. You borrow $5,000 initially and repay it in four equal annual year-end payments. (L05-3)
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If the interest rate is 4%, what is the annual payment?
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Fill in the following table, which shows how much of each payment is interest versns prin-cipal repayment (that is, amortization) and the outstanding balance on the loan at each date.
. Consider a 5-year amortizing loan. You borrow $5,000 initially and repay it in four equal annual year-end payments. (L05-3)
-
If the interest rate is 4%, what is the annual payment?
-
Fill in the following table, which shows how much of each payment is interest versns prin-cipal repayment (that is, amortization) and the outstanding balance on the loan at each date.
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