Compute the amount that can be borrowed under each of the following circumstances: (PV of $1, FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your "Table value" to 4 decimal places.) 1. A promise to repay $92,000 nine years from now at an Interest rate of 8%. 2. An agreement to make three separate annual payments of $29,000, with the first payment occurring 1 year from now. The annual Interest rate is 7%. Option 1 Loan amount Option 2 Annual payments Table Value Table Value Amount Amount Present Value Present Value

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Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.