You are taking an interest-only $10,000 loan. The loan is to be paid in two years...

You are taking an interest-only $10,000 loan. The loan is to be paid in two years and carries monthly interest payments of 0.5%

1. Show amortization table for the loan.

2. What is the outstanding balance of the loan at any month?

Solutions

Expert Solution

	Rate per month	0.50%
	Number of payments	24
No of Periods	Principal At the beginning	PMT(0.50%,24,-10000)	Interest part of PMT= Principal * Interest rate	Principal Part of PMT=PMT-Interest	Ending Principal or Outstanding balance = Beginning Principal - Principla Part of PMT
1	10000	443.21	50	393.21	9606.79
2	9606.79	443.21	48.03396949	395.17	9211.62
3	9211.62	443.21	46.05810882	397.15	8814.47
4	8814.47	443.21	44.07236885	399.13	8415.34
5	8415.34	443.21	42.07670019	401.13	8014.21
6	8014.21	443.21	40.07105317	403.14	7611.08
7	7611.08	443.21	38.05537793	405.15	7205.92
8	7205.92	443.21	36.0296243	407.18	6798.75
9	6798.75	443.21	33.99374191	409.21	6389.54
10	6389.54	443.21	31.94768011	411.26	5978.28
11	5978.28	443.21	29.891388	413.31	5564.96
12	5564.96	443.21	27.82481442	415.38	5149.58
13	5149.58	443.21	25.74790798	417.46	4732.12
14	4732.12	443.21	23.66061701	419.55	4312.58
15	4312.58	443.21	21.56288958	421.64	3890.93
16	3890.93	443.21	19.45467352	423.75	3467.18
17	3467.18	443.21	17.33591637	425.87	3041.31
18	3041.31	443.21	15.20656544	428.00	2613.31
19	2613.31	443.21	13.06656776	430.14	2183.17
20	2183.17	443.21	10.91587008	432.29	1750.88
21	1750.88	443.21	8.754418922	434.45	1316.43
22	1316.43	443.21	6.582160504	436.62	879.81
23	879.81	443.21	4.399040794	438.81	441.00
24	441.00	443.21	2.205005485	441.00	0.00

Best f Luck.God Bless
Please rate well.

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

You borrowed $10,000 two years ago. The loan terms are: 5-year loan with APR of 12%...

You borrowed $10,000 two years ago. The loan terms are: 5-year loan with APR of 12% and with monthly payments of $222.44. Today, you decided you want to pay off the loan in 20 months rather than the remaining life of the loan. How much more do you have to add to your monthly payment in order to accomplish it? Write out your answer in the space provided. MAKE SURE TO SHOW HOW YOU OBTAIN THE ANSWER (STEPS NECESSARY). If...

You borrowed $10,000 two years ago. The loan terms are: 5-year loan with APR of 25%...

You borrowed $10,000 two years ago. The loan terms are: 5-year loan with APR of 25% compounded monthly. 1. What is the monthly payment for the loan? 2. What is the loan balance today? 3. Today, you decide to pay off the loan in 20 months rather than the remaining life of the loan. How much more do you have to add to your monthly payment in order to accomplish the goal? Please include Excel formulas.

What is the annual payment on a $10,000 loan, 7% interest for 5 years?

Suppose you have an interest only loan for $30,000 over 5 years. Should the interest rate...

Suppose you have an interest only loan for $30,000 over 5 years. Should the interest rate be an APR of 7%, compounded monthly, what is the monthly payment in all but the final month? Consider an annuity that pays equal monthly payments of $600 for the next 30 years. Given this, and an APR of 5%, compounded monthly, what would you pay for this today?

you are taking out a loan today of 10000 dollars. it will be paid off with...

you are taking out a loan today of 10000 dollars. it will be paid off with three annual payments, and it has an interest rate of 8% . For each of the next three years, calculate the beginning balance, interest paid, principal paid, and ending balance

You are considering taking out a loan of $11,000.00 that will be paid back over 10...

You are considering taking out a loan of $11,000.00 that will be paid back over 10 years with quarterly payments. If the interest rate is 5.6% compounded quarterly, what would the unpaid balance be immediately after the thirteenth payment? The Unpaid balance would be $ (Round to 2 decimal places.)

You are considering taking out a loan of $7,000.00 that will be paid back over 10...

You are considering taking out a loan of $7,000.00 that will be paid back over 10 years with quarterly payments of $240.45. If the interest rate is 6.6% compounded quarterly, what would the unpaid balance be immediately after the eighth payment? The unpaid balance would be $_______. (Round to 2 decimal places.)

Suppose that you have two loan choices with monthly payments Choice Loan Amount Term (years) Interest...

Suppose that you have two loan choices with monthly payments Choice Loan Amount Term (years) Interest Rate 1 $ 250,000 30 5% 2 $ 220,000 30 4.50% A) What is the annual incremental borrowing cost for loan 1 over loan 2 if you hold the loan for the entire term, assuming there is no origination cost associated with the loans? 3.34% 5.34% 8.34% 10.34% B) If the origination costs for loans 1 and 2 are $3,500 and $2,500 respectively, and...

sales:$1,400,000 COGS:$845,000 G&A:$300,000 advertising:$$75,000 loan :$120,000 loan interest:$12,000 recieved dividend $20,000 paid common stock:$10,000 paid pref...

sales:$1,400,000 COGS:$845,000 G&A:$300,000 advertising:$$75,000 loan :$120,000 loan interest:$12,000 recieved dividend $20,000 paid common stock:$10,000 paid pref stock:$15,000 what is federal tax bill? what is average tax rate? what is marginl tax rate?

You just purchased a car for $50,000. You paid $10,000 for the down payment and the rest is the loan. The car loan is for 36 months at an annual

You just purchased a car for $50,000. You paid $10,000 for the down payment and the rest is the loan. The car loan is for 36 months at an annual interest rate of 6%. The loan payments should be made at the end of each month.A. How much is the monthly payment on the loan? Total monthly payment is ________.B. How much of the monthly payment is the interest payment in month 17?The interest amount is ________.C. How much of...

Subjects