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Amortizing Loan Consider a 4-year amortizing loan. You borrow $394,000 initially, and repay...

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Accounting

Amortizing Loan
Consider a 4-year amortizing loan. You borrow $394,000 initially, and repay it in four equal annual year-end payments.
a.
If the interest rate is 7.61%, calculate the annual payment. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Annual payment $
b.
Prepare an amortization schedule. (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Round your answers to 2 decimal places.)
Time Loan
Balance Year-End Interest
Due on Balance Year-End
Payment Amortization
of Loan
0 $ $ $ $
1
2
3
4
c-1.
What is the loan balance at the end of year 1?(Do not round intermediate calculations. Round your answer to 2 decimal places.)
Loan balance $
c-2.
Is it the present value of the remaining loan payments?
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