Loan amortization problem

Loan amortization problem - Interest Payment Principal...

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Loan Amortization Problem Borrow $1000 for 3 years, interest rate is 10% First, find the payment: PV -1000 FV 0 I 10% N 3 PMT ? $402.11 Construct a table: Interest = principal amount x interest rate Year Loan balance
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Unformatted text preview: Interest Payment Principal portion New principal balance 1 1000 100 $402.11 $302.11 $697.89 2 $697.89 69.79 $402.11 $332.33 $365.56 3 $365.56 36.56 $402.11 $365.56 $0.00...
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This note was uploaded on 03/02/2011 for the course BMGT 340 taught by Professor White during the Spring '08 term at Maryland.

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