Rework Problem 51 assuming that the loan agreement calls for a principal reduction of $17,000 every year

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Rework Problem 51 assuming that the loan agreement calls for a principal reduction of $17,000 every year instead of equal annual payments.

Data from Problem 51

Prepare an amortization schedule for a three-year loan of $51,000. The interest rate is 9 percent per year, and the loan calls for equal annual payments. How much interest is paid in the third year?

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Corporate Finance Core Principles and Applications

ISBN: 978-1259289903

5th edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan

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Question Posted: Apr 03, 2018 04:11 AM

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Rework Problem 51 assuming that the loan agreement calls for a principal reduction of $17,000 every year

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This amortization table calls for equal principal payments of 17000 per year The interest ...View the full answer

Corporate Finance Core Principles and Applications

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