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Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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After Shipra got a job, the first thing she bought was a new car. She took out an amortized loan for $45,000—with no ($0) down payment. She agreed to pay off the loan by making annual payments for the next four years at the end of each year. Her bank is charging her an interest rate of 10% per year. Yesterday, she called to ask that you help her compute the annual payments necessary to repay her loan.
Calculate the annual payment and complete the following loan amortization table:
Year
|
Beginning Amount
|
Payment
|
Interest Paid
|
Principal Paid
|
Ending Balance
|
---|---|---|---|---|---|
1 | $45,000.00 | ||||
2 | |||||
3 | |||||
4 | -$0.02 |
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