En. Johan plans to make a RM20,000 personal loan with UMW Bank. The bank will charge him 4% above the Base Lending Rate, which currently is fixed at 6%. He wishes to settle the loan installment in 5 years.

Determine the annual installment that En. Johan has to pay for the loan.

Construct an amortization schedule for the loan.

Year	A	B	C = A (k)	D = B - C	E = A - D
	Beginning Balance	Annual Payment	Interest	Principal	Ending Balance
1
2
3
4
5