The owner of a small business borrows 40,000 on a 2-year contract at 5% interest compounded annually, with the loan to be repaid in two equal EOY $21,512.20 installments. Complete the table below and show your work

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter16: Information, Risk, And Insurance
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The owner of a small business borrows 40,000 on a 2-year contract at 5% interest compounded annually, with the loan to be repaid in two equal EOY $21,512.20 installments. Complete the table below and show your work
A
BOY
1
2
Totals
B
Unpaid Bal
$40,000.00
F3
C
Int During Yr
F4
$
F5
Loan Payment
D
Amt Owed
F6
%
7
E
Loan Pmt
$21,512.20
$21,512.20
$43.024.40
F7
A
3
Int Pmt
all
6
F
DELL
F8
!!
Prin Pmt
7
l
F9
G
a
Unpaid Bal
F10
H
8
Transcribed Image Text:A BOY 1 2 Totals B Unpaid Bal $40,000.00 F3 C Int During Yr F4 $ F5 Loan Payment D Amt Owed F6 % 7 E Loan Pmt $21,512.20 $21,512.20 $43.024.40 F7 A 3 Int Pmt all 6 F DELL F8 !! Prin Pmt 7 l F9 G a Unpaid Bal F10 H 8
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