Question
What are the repayment schedules for each of the following five-year, 9 percent $11,000 term loans? Use Appendix D to answer the questions. Do not
What are the repayment schedules for each of the following five-year, 9 percent $11,000 term loans? Use Appendix D to answer the questions. Do not leave any cells blank. If the answer is zero, enter "0". Do not round intermediate calculations.
a. Equal annual payments that amortize (retire) the principal and pay the interest owed on the declining balance. Round your answers to the nearest cent.
Year | Interest payment | Principal repayment | Balance on loan | |||
1 | $ | $ | $ | |||
2 | $ | $ | $ | |||
3 | $ | $ | $ | |||
4 | $ | $ | $ | |||
5 | $ | $ | $ |
b. Equal annual principal repayment, with interest calculated on the remaining balance owned. Round your answers to the nearest dollar.
Year | Interest payment | Principal repayment | Balance on loan | |||
1 | $ | $ | $ | |||
2 | $ | $ | $ | |||
3 | $ | $ | $ | |||
4 | $ | $ | $ | |||
5 | $ | $ | $ |
c. No principal repayment until after five years, with interest paid annually on the balance owned. Round your answers to the nearest dollar.
Year | Interest payment | Principal repayment | Balance on loan | |||
1 | $ | $ | $ | |||
2 | $ | $ | $ | |||
3 | $ | $ | $ | |||
4 | $ | $ | $ | |||
5 | $ | $ | $ |
d. $1,400 annual principal repayment, with the balance paid at the end of five years and annual interest paid on the balance owed. Round your answers to the nearest dollar.
Year | Interest payment | Principal repayment | Balance on loan | |||
1 | $ | $ | $ | |||
2 | $ | $ | $ | |||
3 | $ | $ | $ | |||
4 | $ | $ | $ | |||
5 | $ | $ | $ |
PLEASE ANSWER AS SOON AS POSSIBLE THANK YOU SO MUCH!!!
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