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ID: 2551898 • Letter: H

Question

home / study / business / accounting / accounting questions and answers / please answer the following: loan amortization your company is planning to borrow $1.5 million ... Your question has been answered Let us know if you got a helpful answer. Rate this answer Question: Please answer the following: Loan Amortization Your company is planning to borrow $1.5 million on... Please answer the following: Loan Amortization Your company is planning to borrow $1.5 million on a 7-year, 8%, annual payment, fully amortized term loan. What fraction of the payment made at the end of the second year will represent repayment of principal? Round your answer to two decimal places. PLEASE ANSWER AS A FRACTION AS STATED IN THE QUESITON! Thank you!

Explanation / Answer

Period

Beginning Balance

Interest

Principal Payment

Ending Balance

1

$1,500,000

$113,980.29

$166,571.55

$1,333,428.44

2

$1,333,428.44

$100,154.94

$180,396.90

$1,153,031.51

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Period

Beginning Balance

Interest

Principal Payment

Ending Balance

1

$1,500,000

$113,980.29

$166,571.55

$1,333,428.44

2

$1,333,428.44

$100,154.94

$180,396.90

$1,153,031.51