In this case, $PV{A}_N$ equals $$28,000\mathrm{.}00vv,$ I equals $3\%vv,$ and $N$ equals $3$grad.

Using the formula for the present value of an ordinary annuity, the annual payment amount for this loan is $$9,898\mathrm{.}85>.$

Because this payment is fixed over time, enter this annual payment amount in the "Payment" column of the following table for all three years.

Each payment consists of two parts$-$interest and repayment of principal. You can calculate the interest in year $1$ by multiplying the loan balance

at the beginning of the year $(PV{A}_N)$ by the interest rate $($I$).$ The repayment of principal is equal to the payment $($PMT$)$ minus the interest charge

for the year:

The interest paid in year $1$ is

Enter the values for interest and repayment of principal for year $1$ in the following table.

Because the balance at the end of the first year is equal to the beginning amount minus the repayment of principal, the ending balance for year $1$

is

$\_$ This is

the beginning amount for year $2.$

Enter the ending balance for year $1$ and the beginning amount for year $2$ in the following table.