Question: Consider a 4-year redemption loan. You initially borrow $2,700 and repay it in four equal annual year-end payments. A. If the interest rate is 10%,

Consider a 4-year redemption loan. You initially borrow $2,700 and repay it in four equal annual year-end payments.

A.

If the interest rate is 10%, what is the annual payment? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

annual payment$

B.

Prepare a depreciation plan. (Do not leave any cells blank - be sure to enter "0" where appropriate. Do not round intermediate calculations. Round your answers to 2 decimal places.)

TimeCredit Balance, $Year-End Interest Payable on Loan Balance, $Total Year-end Payment, $Depreciation of Loan, $
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