Question

You company has just purchased some new computers using a 5-year bank loan of $54,000. The interest rate on the loan is 9 percent annually, and the loan calls for equal annual payments. Prepare an amortization schedule for the 5-year loan. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Leave no cells blank - be certain to enter "0" wherever required.)

  

Year	Beginning Balance	Total Payment	Interest Payment	Principal Payment	Ending Balance
1
2
3
4
5

b.	How much interest will your company pay in the third year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
c.	How much total interest will your company pay over the life of the loan? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

  

Answer 1