Problem5-40 Amortizing Loan (LO3)

Consider a 4-year amortizing loan. You borrow $2,800 initially and repay it in four equal anual year-end payments.

a. If the interest rate is 8%, what is the annual payment? (Do not round intermediate calculations. Round your answer so 2 decimal

places.)

Anual payment

b. Prepare an amortization schedule. (Do not round intermediate calculations. Round your answers to 2 decimal places. Leave no

cells blank - be certain to enter "O" wherever required.)

Problem 5-40 Amortizing Loan (LO3) Consider a 4-year amortizing loan. You borrow $2,800 Initially and repay it in four equal annual year-end payments. a. If the interest rate is 8%, what is the annual payment? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Annual payment b. Prepare an amortization schedule. (Do not round intermediate calculations. Round your answers to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required.) - Time Loan Balance (5) Year-End Interest Due on Loan Balance ($) Total Year-End Payment ($) Amortization of Loan (S) 0 2.800.00 1 2 3 4 Problem 5-40 Amortizing Loan (LO3) Consider a 4-year amortizing loan. You borrow $2,800 Initially and repay it in four equal annual year-end payments. a. If the interest rate is 8%, what is the annual payment? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Annual payment b. Prepare an amortization schedule. (Do not round intermediate calculations. Round your answers to 2 decimal places. Leave no cells blank.be certain to enter "0" wherever required) Time Loan Balance (5) Year-End Interest Due on Loan Balance ($) Total Year-End Payment ($) Amortization of Loan (S) 0 2.800 00 1 2 3 4