Question: A firm borrows $ 1 , 0 0 0 , and the loan is to be repaid in 3 equal payments at each of the

A firm borrows $1,000, and the loan is to be repaid in 3 equal payments at each of the next 3 years with annual compounding. The lender charges a 5 percent annual interest rate on the loan. Calculate the annual payment and construct the amortization table for all three years.

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