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 1 2 3 4 5 Beginning Total balance $10,000 Interest Principal payment payment payment 2,983.16 Ending balance 0.00