Amortizing Loan

Consider a $4-$year amortizing loan. You borrow $$346,000$ initially, and repay it in four

equal annual year$-$end payments.

a$.$ If the interest rate is $3\mathrm{.}89\%,$ calculate the annual payment. $($Do not round

intermediate calculations. Round your answer to $2$ decimal places.$)$

Annual payment

b$.$ Prepare an amortization schedule. $($Leave no cells blank $-$ be certain to enter $"$O$"$

wherever required. Do not round intermediate calculations. Round your answers

to $2$ decimal places.$)$

c$-1.$ What is the loan balance at the end of year $1?($Do not round intermediate

calculations. Round your answer to $2$ decimal places.$)$

Loan balance

c$-2.$ Is it the present value of the remaining loan payments?