Mary has decided to borrow $120,000. The terms of the loan are 6% over the next 4 years. She will be making annual payments (not monthly).
Construct a loan amortization schedule that shows the 4 payments of Mary's loan.© BrainMass Inc. brainmass.com March 5, 2021, 12:41 am ad1c9bdddf
Please refer attached file for complete solution.
First we should calculate the amount of 4 annual end of year payments.
Present value of loan=PV=$120,000
Number of ...
Solution describes the steps to estimate the annual payment amount in the given case. It also constructs a loan amortization schedule.