Q5. Suppose you borrow $10,000. You are going to repay the loan by making equal annual payments for five years. The interest rate on the loan is 15 percent per year. Prepare an amortization schedule for the loan. How much interest will you pay over the life of the loan? Year Beginning Total Interest Principal Ending balance раyment раyment раyment balance $10,000 3 2,983.16 2.
Q5. Suppose you borrow $10,000. You are going to repay the loan by making equal annual payments for five years. The interest rate on the loan is 15 percent per year. Prepare an amortization schedule for the loan. How much interest will you pay over the life of the loan? Year Beginning Total Interest Principal Ending balance раyment раyment раyment balance $10,000 3 2,983.16 2.
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
Transcribed Image Text:Q5. Suppose you borrow $10,000. You are going to repay the loan by making
equal annual payments for five years. The interest rate on the loan is 15 percent
per year. Prepare an amortization schedule for the loan. How much interest
will you pay over the life of the loan?
Beginning Total
Principal Ending
Year
Interest
balance
payment
раyment
раyment
balance
1
$10,000
2
3
2,983.16
4
5
0.00
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