Question: . Consider a 4-year amortizing loan. You borrow $1,200 initially and repay it in four equal annual year-end payments. a. If the interest rate is

. Consider a 4-year amortizing loan. You borrow $1,200 initially and repay it in four equal annual year-end payments. a. If the interest rate is 10%, what is the annual payment? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Annual payment $ b. Prepare an amortization schedule. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required. Time Loan Balance ($) 0 1 2 3 378.56 Year-End Interest Due on Loan Balance ($) 1,200.00 120 941.44 657.02 344.16 94.14 65.70 34.40 Total Year-End Amortization of Payment ($) Loan ($) 378.56 378.56 378.56 378.56 258.56 284.42 312.86 344.16

Consider a 4-year amortizing loan. You borrow $1,200 initially and repay it in four equal annual year-end payments. a. If the interest rate is 10%, what is the annual payment? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Annual payment b. Prepare an amortization schedule. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Leave no cells blank - be certain to enter " 0 " wherever required

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