1. For example, suppose a business takes out a $6,000, six-year loan at 10 percent. The loan agreement calls for the borrower to pay the interest on the loan balance each year and to reduce the loan balance each year by $1,000. How would the amortization schedule look?

Year	Beginning Balance	Total Payment	Interest Paid	Principle Paid	Ending Balance
1
2
3
4
5
6
Totals