you have a 10-year, $19,000 loan to pay back when you graduate from college next month. The debt, plus 6 percent annual interest on the outstanding balance, will be repaid in 10 annual installments of $2,581 each, beginning one year after graduation. You have accepted a well-paying job and intend to settle the entire outstanding balance early in just three years (just after making the third annual payment of $2,581). Prepare an amortization schedule that shows how much money you need to save to pay off the full outstanding balance of your loan three years after graduation. (Round your answers to the nearest dollar amount. Enter all amounts as positive numbers.)

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To prepare an amortization schedule we need to calculate the outstanding balance of the loan at the ... View the full answer