A five-year $135,000 term loan has an interest rate of 9 percent on the declining balance. What are the equal annual payments required to pay interest and principal on the loan? Construct a table showing the declining balance owed after each payment. Use Appendix D to answer the question. Round your answers to the nearest cent. Do not leave any cells blank. If the answer is zero, enter "0". Do not round intermediate calculations. The annual payment: $ The repayment schedule: Year Interestpayment Principalrepayment Balanceon loan 1 $ $ $ 2 $ $ $ 3 $ $ $ 4 $ $ $ 5 $ $ $

A five-year $135,000 term loan has an interest rate of 9 percent on the declining balance. What are the equal annual payments required to pay interest and principal on the loan? Construct a table showing the declining balance owed after each payment. Use Appendix D to answer the question. Round your answers to the nearest cent. Do not leave any cells blank. If the answer is zero, enter "0". Do not round intermediate calculations. The annual payment: $ The repayment schedule: Year Interestpayment Principalrepayment Balanceon loan 1 $ $ $ 2 $ $ $ 3 $ $ $ 4 $ $ $ 5 $ $ $

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 14P

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Question

The annual payment: $

The repayment schedule:

Year	Interest payment	Principal repayment	Balance on loan
1	$		$	$
2	$		$	$
3	$		$	$
4	$		$	$
5	$		$	$

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