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1. Amortization. Beth has just borrowed $5,000 on a four-year loan at 8% simple interest. Complete the amortization table below for the first five months of the loan.

2. Add-On Interest Loan. What if Beth had made the same loan as an add-on interest loan? How would her payments differ? Why is there a difference?

3. Loan Payments. Tracy is borrowing $8,000 on a six-year, 11%, add-on interest loan. What will Tracy's payments be?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92060713

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