On January 1, 2013, Eagle borrows $ 100,000 cash by signing a four-year, 7% installment note. The note requires four equal total payments of accrued interest and principal on December 31 of each year from 2013 through 2016.

1. Compute the amount of each of the four equal total payments.

2. Prepare an amortization table for this installment note like the one in Exhibit 14.14.

Payments Period Ending Date Debit Debit Notes Credit Ending Balance ExpensePayable Cash Balance Beginning Interest 8% (A) (computed) (A)-(C) () 12/31/2013 $60,000 (2) 12/31/2014...S1.821 (3) 1231/20154 (4) 12/31/2016 (5) 12/312017....23.145 (6) 12/31/2018..12.018 4,800 8,179 8,833 9,540 0.303 1,127 2,018 $60,000 $12,79 $51,821 12.979 42.988 2,979 33,448 12.979 23.145 12.018 4,146 42.988 33,448 2.676 1.852 961 $17,874 12.979 12,979 $77,874 Decreasing Increasing Principal Component Payments Equal Total Interest PrincipalAccrued Interest $8,179 2013 2014 2015 $3,439 2016 $2,676 2017 $1,852 2018 961 $8,833 $9,540 $10,303 $11,127 $12,018 0 $2,500 $5.000 $7,500 $10,000 $12,500 $15,000 Cash Payment Pattern