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  3. a. you get a $10,000 loan from your bank for 3 yea

A. You get a $10,000 loan from your bank for 3 years with 8% interest...

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Finance

A. You get a $10,000 loan from your bank for 3 years with 8% interest rate per year. You make 3 equal payments to repay your loan (amortized repayment). Complete the following table which shows the amortization schedule.
Amortization schedule
year
Beginning Balance
Annual Payment
Interest Expense
Balance Reduction
End Balance
$10,000
$0.00
B. In the previous question, lets assume in the beginning of the 3rd year (right after making the 2nd payment) you have the option to refinance your loan for the remaining one year with a lower rate, 5%. However, you have to pay $150 in administrative fees to do the refinancing. Would you refinance? (For simplicity assume that you will pay the administrative fee at the end of the year)

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