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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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