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Suppose Dmitri recelves a 521,000,00 loan to be repaid in equal instaliments at the end of wach of the next 3 years. The interest rate

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Suppose Dmitri recelves a 521,000,00 loan to be repaid in equal instaliments at the end of wach of the next 3 years. The interest rate is 48 . compounded annually. Use the formula for the present value of an ordinary annuity to find this payment amount: PVAN=PMFTt(t+a+AN1) PMTT=PAN(11+NN1)1 In this cose, PAN equais 1 equals and N equals Using the formule for the present value of an ordinary annuity, the annual payment amount for this loan is Because this poyment is fixed over time, enter this annuaf payment amount in the "Payment" column of the follawing table for all three years. Eath payment consists of two parts-interest and repayment of principal. You can calculate the interest in yeser 1 by multiplying the loan balance Each payment consists of two perts-interest and repayment of principal. You can calculate the interest in year 1 by multiplying the foan balance at the beginning of the year (PVAN) by the interest rate (I). The repayment of principal is equal to the paymant (pMT) minus the interest charge for the year: The interest poid in year 1 is Enter the valuies for interest and repayment of principal for year 1 in the following table. Because the balance at the end of the frist year is equal to the beginning amount minus the repayment of principal, the ending balance for year 1 . the beginning amount for year 2 . Enter the ending balance for year 1 and the beginning amount for year 2 in the following table. Using the some process as you did for year 1, complete the following amortization table by filling in the remaining values for yrars 2 and 3 . Using the same procest as you did for year 1, complete the foliowing amortization table by filling in the remaining values for years 2 and 3 . Complete the following table by determining the percentage of each payment that represents interest and the percentage that represents principal for egch of the three yearsi

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