Amortizing Loan Consider a 4-year amortizing loan. You borrow $351,000 initially, and repay it in four equal annual year-end payments. a. If the interest rate is 4.55%, calculate the annual payment. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Annual payment b. Prepare an amortization schedule. (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Round your answers to 2 decimal places.) Time 0 Loan Balance Year-End Interest Due on Balance Year-End Payment Amortization of Loan $ $ $ $ 1234

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Amortizing Loan
Consider a 4-year amortizing loan. You borrow $351,000 initially, and repay it in four
equal annual year-end payments.
a. If the interest rate is 4.55%, calculate the annual payment. (Do not round
intermediate calculations. Round your answer to 2 decimal places.)
Annual payment
b. Prepare an amortization schedule. (Leave no cells blank - be certain to enter "0"
wherever required. Do not round intermediate calculations. Round your answers
to 2 decimal places.)
Time
0
Loan
Balance
Year-End Interest
Due on Balance
Year-End
Payment
Amortization
of Loan
$
$
$
$
1234
Transcribed Image Text:Amortizing Loan Consider a 4-year amortizing loan. You borrow $351,000 initially, and repay it in four equal annual year-end payments. a. If the interest rate is 4.55%, calculate the annual payment. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Annual payment b. Prepare an amortization schedule. (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Round your answers to 2 decimal places.) Time 0 Loan Balance Year-End Interest Due on Balance Year-End Payment Amortization of Loan $ $ $ $ 1234
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