SOLUTION: Determine the annual payment on a $15,000 loan that is to be amortized over a four-year period and carries a 10 percent interest rate. Also prepare a loan amortization schedule for

Question 1184671: Determine the annual payment on a $15,000 loan that is to be amortized over a four-year period and carries a 10 percent interest rate. Also prepare a loan amortization schedule for this loan.

Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
loan is 15,000, amortized over a 4 year period at 10% interest rate per year.
payment on the loan at the end of each year is 4732.06.

here's the amortization schedule.

beginning of first year balance = 15,000
end of first year balance = 15,000 * 1.10 - 4732.06 = 11767.94
end of second year balance = 11767.94 * 1.10 - 4732.06 = 8212.67
end of third year balance = 8212.67 * 1.10 - 4732.06 = 4301.87
end of fourth year balance = 4301.87 * 1.10 - 4732.06 = 0

numbers shown are rounded to the nearest penny.
the actual calculations were done with the unrounded numbers.

you can do this yourself with the following online financial calculator.

https://arachnoid.com/finance/index.html

the output looks like this.

inputs are everything except the payment amount.
output is the payment amount

you still have to make up the amortization schedule yourself.

i used the ti-ba-ii business analyst calculator.
it does the same job as the online financial calculator.

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