Sally Sanford is buying an automaoblie that costs $12,000. She will pay $2,000 immediately and the remaining $10,000 in four annual end of year principal payments of $2,500 each. In addition to the $2,500, she must pay 15% interest on the unpaid balance of the loan each year. Prepare a cash flow table to represent the situation.
Sally's car loan amortization
Total Interest Principal Balance
The solution is a table in which an auto loan is amortized.