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Loan interest deductions Liz Rogers just closed a $10,000 business loan that is to be repaid in three equal, annual, end-of-year payments. The interest rate on the loan is 13%. As part of her firm’s detailed financial planning, Liz wishes to determine the annual interest deduction attributable to the loan.a. determine the firm’s annual loan paymentb. Prepare an amortization schedule for the loanc. How much interest expense will Jones firm have in each of the next 3 years as a result of this loan?
Liz Rogersa) Let Installemnt per year be X $Therefore, $10000 = X x PVIFA(13%, 3)Year123 Inetrest rate13%13%13%X= b) Disc. Rate0.884955750.783146680.693050162.3611526$4,235.22…
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