a. Set up an amortization schedule for a $19,000 loan to be repaid in equal installments at
Question:
a. Set up an amortization schedule for a $19,000 loan to be repaid in equal installments at the end of each of the next 3 years. The interest rate is 8% compounded annually.
b. What percentage of the payment represents interest and what percentage represents principal for each of the 3 years? Why do these percentages change over time?
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Step by Step Answer:
a With a financial calculator enter N 3 IYR 8 PV 19000 and FV 0 and solve for PMT 737264 Then go thr...View the full answer
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Related Book For 
Fundamentals of Financial Management
ISBN: 978-1305635937
Concise 9th Edition
Authors: Eugene F. Brigham
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