a. Complete an amortization schedule for a $32,000 loan to be repaid in equal installments at the end of each of the next three

Question

4 years ago

14

years. The interest rate is 12% compounded annually. Round all answers to the nearest cent.

1 answer:

Gre4nikov [31] · Answer 1 · 2022-02-11T22:38:22+03:00

Answer:

Amortization schedule is attached.

Explanation:

Key matrix

Present value annuity factor

Rate = 12%

Terms = 3 years

Annuity factor = 2.408 (this can be derived from present value table - annuity factor)

Annual payment = 32,000/2.408

Annual payment = $13,323.17