Question
Q5. Suppose you borrow $10,000. You are going to repay the loan by making equal annual payments for five years. The interest rate on the
Q5. Suppose you borrow $10,000. You are going to repay the loan by making equal annual payments for five years. The interest rate on the loan is 15 percent per year. Prepare an amortization schedule for the loan. How much interest will you pay over the life of the loan?
Year | Beginning balance | Total payment | Interest payment | Principal payment | Ending balance |
1 | $10,000 |
|
|
|
|
2 |
|
|
|
|
|
3 |
| 2,983.16 |
|
|
|
4 |
|
|
|
|
|
5 |
|
|
|
| 0.00 |
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Principles Of Accounting Volume 2 Managerial Accounting
Authors: OpenStax
1st Edition
0357364805, 9780357364802
