Assume that you will have a 10-year, $14,000 loan to repay when you graduate from college next month. The loan, plus 11 percent annual interest on the unpaid balance, is to be repaid in 10 annual installiments of $2,377 each, beginning one year after you graduate. You have accepted a well-paying job and are considering an early settlement of the entire unpaid balance in just three years (immediately after making the third annual payment of $2,377). Prepare an amortization schedule showing how much money you will need to save to pay the entire unpaid balance of your loan three years after your graduation. (Round your answers to the nearest dollar amount. Enter all amounts as positive numbers.) Annual Interest Reduction Annual in Unpaid Balance Unpaid Balance Interest Period Payment Expense @11% Date of Graduation Year 1 2.377 2,377 2,377 Year 2 Year 3
Assume that you will have a 10-year, $14,000 loan to repay when you graduate from college next month. The loan, plus 11 percent annual interest on the unpaid balance, is to be repaid in 10 annual installiments of $2,377 each, beginning one year after you graduate. You have accepted a well-paying job and are considering an early settlement of the entire unpaid balance in just three years (immediately after making the third annual payment of $2,377). Prepare an amortization schedule showing how much money you will need to save to pay the entire unpaid balance of your loan three years after your graduation. (Round your answers to the nearest dollar amount. Enter all amounts as positive numbers.) Annual Interest Reduction Annual in Unpaid Balance Unpaid Balance Interest Period Payment Expense @11% Date of Graduation Year 1 2.377 2,377 2,377 Year 2 Year 3
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 17P
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Transcribed Image Text:Assume that you will have a 10-year, $14,000 loan to repay when you graduate from college next month. The loan, plus 11 percent
annual interest on the unpaid balance, is to be repaid in 10 annual installments of $2,377 each, beginning one year after you graduate.
You have accepted a well-paying job and are considering an early settlement of the entire unpaid balance in just three years
(immediately after making the third annual payment of $2,377).
Prepare an amortization schedule showing how much money you will need to save to pay the entire unpaid balance of your loan three
years after your graduation. (Round your answers to the nearest dollar amount. Enter all amounts as positive numbers.)
Annual
Interest
Expense
@11%
Reduction
Annual
Payment
in Unpaid
Balance
Unpaid
Balance
Interest Period
Date of Graduation
Year 1
2.377
Year 2
2,377
Year 3
2,377
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