Calculate the annual end-of-year loan payment

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Reference no: EM13913079

Joe borrowed RM15,000 at 14 percent annual rate of interest to be repaid over three years. The loan is amortized into three equal annual end-of-year payments. a. Calculate the annual end-of-year loan payment. b. Prepare a loan amortization schedule, showing the interest and principal breakdown of each of the three loan payments. c. Explain why the interest portion of each payment declines with the passage of time.

Reference no: EM13913079

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