Question: Consider a 4-year amortizing loan. You borrow $308,000 initially, and repay it in four equal annual year-end payments. a. If the interest rate is 3.98%,

Consider a 4-year amortizing loan. You borrow $308,000 initially, and repay it in four equal annual year-end payments.

a.

If the interest rate is 3.98%, 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 "0" wherever required. Do not round intermediate calculations. Round your answers to 2 decimal places.)

Time Loan Balance Year-End Interest Due on Balance Year-End Payment Amortization of Loan
0 $ $ $ $
1
2
3
4

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?

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