Calculate the annual end-of-year loan payment. prepare, Ask an Expert

Finance

Joan Messineo borrowed $15,000 at a 14% annual rate of interest to be repaid over 3 years. The loan is amortized into three equal, annual, end-of-year payments.

a. find out the annual, end-of-year loan payment.

b. Prepare a loan amortization schedule showing the interest and principal breakdown of each of the three loan payments.

c. describe why the interest portion of each payment declines with the passage of time.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M956502

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