You have taken a $16,000, 4-year loan at 10% interest rate from RBC. The loan agreement requires you to pay the interest on the loan balance each year, reducing the loan balance each year by $4,000. Thus, you are able to discharge the loan with interest to RBC, as a blended payment, owing nothing after 4 years. 

Required: Set up amortization schedules as shown below: Year Beginning Total Interest Principal Ending (1 to 4) Balance Payment Paid Payment Balance 

1. Show a simple amortization table. 

2. Show a Blended Payment Schedule (Interest and Principal)

3. Explain the significance of the difference.

Answer rating: 100% (QA)

Amortization Schedules 1 Simple Amortization Table Year Beginning Balance Interest Payment 10 Princi... View the full answer