Question

XYZ wants to expand its operations by adding another product, which will be a 5-years project with an investment cost of $115,000. If XYZ borrowed $115,000 at a yearly interest rate of 12% for 6 years, generate the loan amortization table (starting balance, interest payment, principal payment, ending balance) if they want to pay off the loan at the end of year 5. Show your calculations.

Answer 1

LOAN AMOUNT $          1,15,000.00 ANNUAL INTEREST 12% YEAR PV FACTOR 1 0.8929 2 0.7972 3 0.7118 4 0.6355 5 0.5674 6 0.5066 SUM OF PV FACTOR 4.1114 ANNUAL REPAYMENT X SUM OF PV FACTOR $          1,15,000.00 ANNUAL REPAYMENT X 4.1114 $          1,15,000.00 ANNUAL REPAYMENT(115000/4.1114) $             27,971.00 AMORTIZATION SCHEDULES YEAR PRINCIPAL INTEREST REPAYMENT CLOSING BALANCE 1 $          1,15,000.00 $ 13,800.00 $     (27,971.00) $             1,00,829.00 2 $          1,00,829.00 $ 12,099.48 $     (27,971.00) $                 59,058.00 3 $             84,957.48 $ 10,194.90 $     (27,971.00) $                 31,087.00 4 $             67,181.38 $    8,061.77 $     (27,971.00) $                 47,272.15 5 $             47,272.15 $    5,672.66 $     (27,971.00) $                 24,973.81 6 $             24,973.81 $    2,996.86 $     (27,971.00) $                                -