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    Time Value of Money: Loan Amortization Schedule

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    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.

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    https://brainmass.com/business/the-time-value-of-money/time-value-money-loan-amortization-schedule-525815

    Solution Preview

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    Solution
    First we should calculate the amount of 4 annual end of year payments.
    Present value of loan=PV=$120,000
    Interest rate=i=6%
    Number of ...

    Solution Summary

    Solution describes the steps to estimate the annual payment amount in the given case. It also constructs a loan amortization schedule.

    $2.49

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