Assume that you will have a 10-year, $10,000 loan to repay to your parents when you graduatefrom college next month. The loan, plus 8 percent annual interest on the unpaid balance, is to berepaid in 10 annual installments of $1,490 each, beginning one year after you graduate. You haveaccepted a well-paying job and are considering an early settlement of the entire unpaid balance injust three years (immediately after making the third annual payment of $1,490).Prepare an amortization schedule showing how much money you will need to save to pay yourparents the entire unpaid balance of your loan three years after your graduation. (Round amountsto the nearest dollar.)

Assume that you will have a 10-year, $10,000 loan to repay to your parents when you graduate
from college next month. The loan, plus 8 percent annual interest on the unpaid balance, is to be
repaid in 10 annual installments of $1,490 each, beginning one year after you graduate. You have
accepted a well-paying job and are considering an early settlement of the entire unpaid balance in
just three years (immediately after making the third annual payment of $1,490).
Prepare an amortization schedule showing how much money you will need to save to pay your
parents the entire unpaid balance of your loan three years after your graduation. (Round amounts
to the nearest dollar.)

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