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You are the loan officer of a bank. The ABC Company wants to borrow $100,000 and...

You are the loan officer of a bank. The ABC Company wants to borrow $100,000 and repay it with four equal annual payments (first payment due one year from now). You decide that the ABC Company should pay 0.10 per year on the loan.

a. What is the annual payment?

b. Complete the following debt amortization table:

Period Amount owed(beginnig of yr) Interest Principal Amount owed(end of yr)
1 $100,000
2
3
4

c. What would be the annual payment if the first of four equal payments is due

immediately?

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