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Joan Messineo borrowed ?$45,000 at a 4?% annual rate of interest to be repaid over 3 years. The loan is amortized into three? equal, annual,? end-of-year payments.
Problem 1: Calculate the? annual, end-of-year loan payment.
Problem 2: What's a loan amortization schedule (excel) showing the interest and principal breakdown of each of the three loan payments.
Problem 3: Explain why the interest portion of each payment declines with the passage of time.
Problem 4: The amount of the? equal, annual,? end-of-year loan payment is
Financial Statement Analysis and Preparation
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