# Question: What are the repayment schedules for each of the following

What are the repayment schedules for each of the following five-year, 10 percent $10,000 term loans?

a. equal annual payments that amortize (retire) the principal and pay the interest owed on the declining balance

b. equal annual principal repayment, with interest calculated on the remaining balance owned

c. no principal repayment until after five years, with interest paid annually on the balance owned

d. $1,000 annual principal repayment, with the balance paid at the end of five years and annual interest paid on the balance owed

a. equal annual payments that amortize (retire) the principal and pay the interest owed on the declining balance

b. equal annual principal repayment, with interest calculated on the remaining balance owned

c. no principal repayment until after five years, with interest paid annually on the balance owned

d. $1,000 annual principal repayment, with the balance paid at the end of five years and annual interest paid on the balance owed

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