2-2 You borrow $60,000 at an annual interest rate of 12%. You will pay the loan...

 

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2-2 You borrow $60,000 at an annual interest rate of 12%. You will pay the loan back in two equal payments at the end of year 3 and year 6. a. Calculate the amount to be paid each year using the factor tables. b. Draw the fully labeled cash flow diagram. c. Complete the following table: Year 0 Balance Interest amount Total (BOY +Interest) Payment Balance 1 2 3 4 5 6 2-2 You borrow $60,000 at an annual interest rate of 12%. You will pay the loan back in two equal payments at the end of year 3 and year 6. a. Calculate the amount to be paid each year using the factor tables. b. Draw the fully labeled cash flow diagram. c. Complete the following table: Year 0 Balance Interest amount Total (BOY +Interest) Payment Balance 1 2 3 4 5 6