Now it's time for you to practice what you've learned..Suppose Teresa receives a $37,000.00 loan to be repaid in equal installments at the end of each of the next 3 years. The interest rate is 8%compounded annually.Complete the following amortization schedule by calculating the payment, interest, repayment of principal, and ending balance for each year.YearBeginning Amount1$37,000.0023PaymentInterestRepayment of PrincipalEnding Balance$0.00Complete the following table by determining the percentage of each payment that represents interest and the percentage that represents principalfor each of the three years.Payment ComponentYear 1InterestRepayment of PrincipalPercentage of PaymentYear 2Year 3

Loan amount = $37,000.00Interest rate = 8%Number of years = 3 years

ow it's time for you to practice what you've learned. uppose Teresa receives a $37,000.00 loan to be repaid in equal installments at the end of each of the next 3 years. The interest r ompounded annually. Complete the following amortization schedule by calculating the payment, interest, repayment of principal, and ending balance for each year Repayment of Principal Ending Balance Year Beginning Amount 1 2 3 $37,000.00 Payment Interest $0.00

ow it's time for you to practice what you've learned. uppose Teresa receives a $37,000.00 loan to be repaid in equal installments at the end of each of the next 3 years. The interest r ompounded annually. Complete the following amortization schedule by calculating the payment, interest, repayment of principal, and ending balance for each year Repayment of Principal Ending Balance Year Beginning Amount 1 2 3 $37,000.00 Payment Interest $0.00

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

Section: Chapter Questions

Problem 1PS

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Question

Now it's time for you to practice what you've learned..
Suppose Teresa receives a $37,000.00 loan to be repaid in equal installments at the end of each of the next 3 years. The interest rate is 8%
compounded annually.
Complete the following amortization schedule by calculating the payment, interest, repayment of principal, and ending balance for each year.
Year
Beginning Amount
1
$37,000.00
2
3
Payment
Interest
Repayment of Principal
Ending Balance
$0.00
Complete the following table by determining the percentage of each payment that represents interest and the percentage that represents principal
for each of the three years.
Payment Component
Year 1
Interest
Repayment of Principal
Percentage of Payment
Year 2
Year 3

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