In an amortization table for a four-year loan of $45,280, given an interest rate of 11%, how much will the principal payment be in the second year if the loan calls for equal payments? Select one: a.$15222.90 b.$10,448.32 c.$15,593 d.$10,671.69

In an amortization table for a four-year loan of $45,280, given an interest rate of 11%, how much will the principal payment be in the second year if the loan calls for equal payments? Select one: a.$15222.90 b.$10,448.32 c.$15,593 d.$10,671.69

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 12P

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Concept explainers

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.

Question

In an amortization table for a four-year loan of $45,280, given an interest rate of 11%, how much will the principal payment be in the second year if the loan calls for
equal payments?
Select one:
a.$15222.90
O b.$10,448.32
O c.$15,593
d.$10,671.69

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