Prepare an amortization sxhedule for a three-year loan of $12,000. The interest rate is 7% per...

Prepare an amortization sxhedule for a three-year loan of $12,000. The interest rate is 7% per year, and the loan calls for equal annual end-of-year payments.

Expert Solution

Amortization schedule
Year	Payment	Interest portion	Principal portion	Loan balance
0	$ -	$ -	$ -	$ 12,000.00
1	$ 4,572.62	$ 840.00	$ 3,732.62	$ 8,267.38
2	$ 4,572.62	$ 578.72	$ 3,993.90	$ 4,273.48
3	$ 4,572.62	$ 299.14	$ 4,273.48	$ -

Excel formulas:

jeff jeffy answered 1 year ago

Prepare an amortization schedule for a five-year loan of $84,000. The interest rate is 8% per...

Prepare an amortization schedule for a five-year loan of $84,000. The interest rate is 8% per year and the loan calls for equal annual payments. How much interest is paid in the third year? How much total interest is paid over the life of the loan? Provide another amortization schedule if you must pay $8,400 toward the principle each year instead of equal annual payments. How much interest is paid in the third year? Explain why the third year interest...

Prepare an amortization schedule for a three-year loan of $111,000. The interest rate is 10 percent...

Prepare an amortization schedule for a three-year loan of $111,000. The interest rate is 10 percent per year, and the loan calls for equal annual payments. How much total interest is paid over the life of the loan? (Leave no cells blank. Enter '0' where necessary. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Year Beginning Balance Total Payment Interest Payment Principal Payment Ending Balance 1 $ 111000 $ $ $ $ 2...

Prepare amortization schedule for a five-year loan of $167,500. The interest rate is 17 percent per...

Prepare amortization schedule for a five-year loan of $167,500. The interest rate is 17 percent per year and the loan calls for equal annual payments. How much interest is paid in the third year? How much total interest is paid over the life of the loan? (No excel sheet)

Amortization with Equal Payments. Prepare an amortization schedule for a three-year loan of $57,000. The interest...

Amortization with Equal Payments. Prepare an amortization schedule for a three-year loan of $57,000. The interest rate is 8 percent per year, and the loan calls for equal annual payments. How much interest is paid in the third year? How much total interest is paid over the life of the loan?

a)Prepare an amortization schedule for a 10-year loan of $300,000. The interest rate is 12% and...

a)Prepare an amortization schedule for a 10-year loan of $300,000. The interest rate is 12% and the loan calls for equal payments. How much interest is paid in the fifth year? How much interest is paid over the life of the loan? b)What is the present value of $2,625 per year at a discount rate of 8%, if the first payment is received six years from now and the last payment is received 20 years from now?

You have three year loan of 60000. the interest rate is 7% per year, and the...

You have three year loan of 60000. the interest rate is 7% per year, and the loan calls for equal annual payments. What is the amount of principal paid at the end of year 2?

Prepare a schedule showing the amortization of a $12,000 loan to be repaid in 10 end-of-year...

Prepare a schedule showing the amortization of a $12,000 loan to be repaid in 10 end-of-year installments that include interest at a rate of 6%. Jared and Courtney Jill own a parcel of fertile farm land which a local farmer has offered to rent for a period of 10 years. He is willing to make a payment of $20,000 today or pay an ordinary annuity of $3,400 at the end of each of the next 10 years. Which payment method...

Prepare an amortization schedule for a five-year loan of $55,000. The interest rate is 8 percent...

Prepare an amortization schedule for a five-year loan of $55,000. The interest rate is 8 percent per year, and the loan calls for equal annual payments. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Leave no cells blank - be certain to enter "0" wherever required.) Year Beginning Balance Total Payment Interest Payment Principal Payment Ending Balance 1 $ $ $ $ $ 2 3 4 5 How...

Prepare an amortization schedule for a three-year loan of $24,000.

Prepare an amortization schedule for a three-year loan of $24,000. The interest rate is 16 percent per year, and the loan calls for equal principal payments.

Suppose you are going to receive $12,000 per year for 7 years. The appropriate interest rate...

Suppose you are going to receive $12,000 per year for 7 years. The appropriate interest rate is 9 percent. a. What is the present value of the payments if they are in the form of an ordinary annuity? b. What is the present value if the payments are an annuity due? c. Suppose you plan to invest the payments for 7 years, what is the future value if the payments are an ordinary annuity? d. Suppose you plan to invest...

Question