Consider a 4-year amortizing loan. You borrow $2,400 initially and repay it in four equal annual year-end payments. a. If the interest rate is 10%, what is the annual payment? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Annual payment $ b. Prepare an amortization schedule. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required. Time 0 1 ✓Answer is complete and correct. 757.13 2 3 4 Loan Balance ($) Answer is complete but not entirely correct. Year-End Interest Due on Loan Balance ($) 2,400.00 0 2,400.00 1,882.87 1,314.03 688 x 240.00 188.29 131.40 68.83 Total Year- End Payment ($) 0 757.13 757.13 757.13 757.13 Amortization of Loan (S) 0 517.13 568.84 625.73 688.30 S
Consider a 4-year amortizing loan. You borrow $2,400 initially and repay it in four equal annual year-end payments. a. If the interest rate is 10%, what is the annual payment? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Annual payment $ b. Prepare an amortization schedule. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required. Time 0 1 ✓Answer is complete and correct. 757.13 2 3 4 Loan Balance ($) Answer is complete but not entirely correct. Year-End Interest Due on Loan Balance ($) 2,400.00 0 2,400.00 1,882.87 1,314.03 688 x 240.00 188.29 131.40 68.83 Total Year- End Payment ($) 0 757.13 757.13 757.13 757.13 Amortization of Loan (S) 0 517.13 568.84 625.73 688.30 S
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 17P
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