A five-year $135,000 term loan has an interest rate of 9 percent on the declining balance. What are the equal annual payments required to pay interest and principal on the loan? Construct a table showing the declining balance owed after each payment. Use Appendix D to answer the question. Round your answers to the nearest cent. Do not leave any cells blank. If the answer is zero, enter "0". Do not round intermediate calculations. The annual payment: $     The repayment schedule: Year Interestpayment Principalrepayment Balanceon loan 1 $     $     $     2 $     $     $     3 $     $     $     4 $     $     $     5 $     $     $

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter16: Working Capital Policy And Short-term Financing
Section: Chapter Questions
Problem 14P
Question

A five-year $135,000 term loan has an interest rate of 9 percent on the declining balance. What are the equal annual payments required to pay interest and principal on the loan? Construct a table showing the declining balance owed after each payment. Use Appendix D to answer the question. Round your answers to the nearest cent. Do not leave any cells blank. If the answer is zero, enter "0". Do not round intermediate calculations.

The annual payment: $    

The repayment schedule:


Year
Interest
payment
Principal
repayment
Balance
on loan
1 $     $     $    
2 $     $     $    
3 $     $     $    
4 $     $     $    
5 $     $     $    
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