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You borrow $10,000 on January 1 and agree to pay off the loan with 10 annual...

You borrow $10,000 on January 1 and agree to pay off the loan with 10 annual end-of-year payments. Your annual effective interest rate is 5%. Complete the loan amortization table shown below for payment number 5 and payment number 6.

Payment number    Payment Amount    Principal    Interest Loan Balance After Payment

5

6

Business   Finance   
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