Problem 27-01

A five-year $145,000 term loan has an interest rate of 9 percent on the declining balance. What are the equal annual payments required to pay interest and principal on the loan? Construct a table showing the declining balance owed after each payment. Use Appendix D to answer the question. Round your answers to the nearest cent. Do not leave any cells blank. If the answer is zero, enter "0". Do not round intermediate calculations.

The annual payment: = $

The repayment schedule:

Year	Interest payment	Principal repayment	Balance on loan
1	$		$		$
2	$		$		$
3	$		$		$
4	$		$		$
5	$		$		$