Time Value of Money: Amortized Loans

An important application of interest involves amortized loans. Some common types of amortized loans are automobile loans, home mortgage loans, and business loans. Each Jover the life of the loan, while the principal repayment is in the first period and i thereafter. $5$ years, with the first payment to be made one year from today. He requires a $6\%$ annual return.

a$.$ What will be your annual loan payments? Do not round intermediate calculations. Round your answer to the nearest cent. $ Interest: $

Principal repayment: $

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