Exercise 10-14 Installment note with equal total payments LO C1, P5

On January 1, 2013, Eagle borrows $21,000 cash by signing a four-year, 5% installment note. The note requires four equal total payments of accrued interest and principal on December 31 of each year from 2013 through 2016. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided.)

1.	Compute the amount of each of the four equal total payments.

Interest Rate	Initial Note Balance		Table Value		Amount of Each Payment
5.0%		/		=

2.Prepare an amortization table for this installment note. (Round your intermediate calculations to the nearest dollar amount.)

Payments
	(A)	(B)	(C)	(D)	(E)
Period
Ending	Beginning	Debit Interest	Debit Notes	Credit	Ending
Date	Balance	Expense	Payable	Cash	Balance
2013
2014
2015
2016
Total

TABLE B.1 Present Value of 1 Periods I 2 681SWN 3 4 5 7 9 10 || 13 14 15 16 17 18 19 8888: 20 25 30 35 40 1% 2% 0.9901 0.9804 0.9709 0.9803 0.9612 0.9426 0.9706 0.9423 0.9151 0.9610 0.9238 0.8885 0.9515 0.9057 0.8626 0.8375 0.8131 0.9420 0.8880 0.9327 0.8706 0.9235 0.8535 0.9143 0.8360 0.8277 0.8195 0.9053 0.8963 0.8874 0.8787 0.8700 0.8613 0.7430 0.8528 0.8444 0.7798 0.7419 0.7059 0.6717 3% 0.6864 0.6730 0.6095 0.5521 0.5000 0.4529 0.7894 0.7307 0.8368 0.7664 0.7026 0.8203 0.7441 0.6756 0.8043 0.7224 0.6496 0.7885 0.7014 0.6246 0.7730 0.6810 0.6006 0.5303 0.7579 0.6611 0.5775 0.5051 0.6419 0.5553 0.7284 0.6232 0.5339 0.7142 0.7002 0.5874 4% 0.5703 0.5537 7% 0.9346 0.9259 0.9174 0.8734 0.8573 0.8417 0.9615 0.9524 0.9434 0.9246 0.9070 0.8900 0.8890 0.8638 0.8396 0.8163 0.8548 0.8227 0.7921 0.7629 0.8219 0.7835 0.7473 0.7130 0.7903 0.7462 0.7050 0.6663 0.7599 0.7938 0.7722 0.7350 0.7084 0.6806 0.6302 0.5963 0.7107 0.6651 0.6227 0.5835 0.5470 0.6768 0.6274 0.5820 0.5403 0.6446 0.5919 0.5439 0.5002 0.6139 0.5584 0.5083 0.4632 0.4751 0.5847 0.5268 0.4289 0.5568 0.4970 0.4440 0.3971 0.4688 0.4423 0.4776 0.4120 0.3554 0.3066 5% 0.4810 0.4173 0.4581 0.3936 0.6050 0.5134 0.4363 0.3714 0.4936 0.4155 0.3503 0.4746 0.3957 0.3305 0.4564 0.3769 0.3118 0.2953 0.2330 0.2314 0.1741 0.3751 0.1813 0.1301 0.1420 0.0972 Rate 0.3083 0.2534 0.2083 8% 9% p = 1/(1+i)n 10% 12% 0.9091 0.8929 0.8264 0.7972 0.7513 0.7118 0.6830 0.6355 15% 0.8696 0.7561 0.6575 0.5718 0.4972 0.4323 0.3759 0.3269 0.2843 0.2472 0.2149 0.1869 0.1625 0.1413 0.6499 0.6209 0.5674 0.5645 0.5066 0.5132 0.4523 0.5019 0.4665 0.4039 0.4604 0.4241 0.3606 0.4224 0.3855 0.3220 0.3505 0.2875 0.3186 0.2567 0.2897 0.2292 0.2633 0.2046 0.3875 0.3555 0.4150 0.3677 0.3262 0.3878 0.3405 0.2992 0.3624 0.3152 0.2745 0.2394 0.1827 0.3387 0.2919 0.2519 0.2176 0.1631 0.3166 0.2703 0.2311 0.1978 0.1456 0.2959 0.2502 0.2120 0.1799 0.1300 0.1161 0.0703 0.0611 0.0808 0.2765 0.2317 0.2584 0.2145 0.1842 0.1460 0.1314 0.0994 0.0937 0.0676 0.0668 0.0460 0.1945 0.1635 0.1784 0.1486 0.1037 0.1160 0.0923 0.0588 0.0754 0.0573 0.0334 0.0304 0.0151 0.0490 0.0356 0.0189 0.0075 0.0318 0.0221 0.0107 0.0037 0.1229 0.1069 0.0929