Prepare an amortization schedule table for a three-year loan of $78,000. The interest rate is 11 percent per year, and the loan calls for equal annual payments. How much total interest is paid over the life of the loan?
Loan Amortization schedule:
Loan amortization schedule refers to the repayment schedule of a loan taken. Loan can be repaid either in lump sum at the end of the period, equal principal repayments or equal periodic repayments, etc.
Answer and Explanation:
Let us first find out the annual payments from the loan.
Annual payments = Loan amount / PVAF(r,n)
PVAF or present value annuity factor is the sum...
See full answer below.
Become a member and unlock all Study Answers
Try it risk-free for 30 daysTry it risk-free
Ask a question
Our experts can answer your tough homework and study questions.Ask a question Ask a question
Learn more about this topic:
from Business 110: Business MathChapter 8 / Lesson 3