10. Loan amortization and capital recovery After Shipra got a job, the first thing she bought was a new car. She took out an amortized loan for $45,000-with no ($0) down payment. She to pay off the loan by making annual payments for the next four years at the end of each year. Her bank is charging her an interest rate of 10% year. Yesterday, she called to ask that you help her compute the annual payments necessary to repay her loan. Calculate the annual payment and complete the following loan amortization table: Year Beginning Amount 1 2 3 4 $45,000.00 Payment Interest Paid Principal Paid Ending Balance -$0.02

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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10. Loan amortization and capital recovery
After Shipra got a job, the first thing she bought was a new car. She took out an amortized loan for $45,000-with no ($0) down payment. She a
to pay off the loan by making annual payments for the next four years at the end of each year. Her bank is charging her an interest rate of 10%
year. Yesterday, she called to ask that you help her compute the annual payments necessary to repay her loan.
Calculate the annual payment and complete the following loan amortization table:
Year Beginning Amount
1
2
3
4
$45,000.00
Payment
Interest Paid
Principal Paid
Ending Balance
-$0.02
Transcribed Image Text:10. Loan amortization and capital recovery After Shipra got a job, the first thing she bought was a new car. She took out an amortized loan for $45,000-with no ($0) down payment. She a to pay off the loan by making annual payments for the next four years at the end of each year. Her bank is charging her an interest rate of 10% year. Yesterday, she called to ask that you help her compute the annual payments necessary to repay her loan. Calculate the annual payment and complete the following loan amortization table: Year Beginning Amount 1 2 3 4 $45,000.00 Payment Interest Paid Principal Paid Ending Balance -$0.02
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