You just took out a 10 year commercial real estate loan for your business. The loan...

You just took out a 10 year commercial real estate loan for your business. The loan amount is $250,000 and the interest rate is 3.5%. How many periods (months) will it take you to pay off $100,000 of the principal loan? Round your answer to the closest whole number. PLEASE answer in excel with appropriate excel formulas

Expert Solution

At months 54 Principal of 100,000 is paid off. as per following table.

	A	B	C	D	E
	Beginning Balance	PMT=PMT(3.5%/12,120,A1)	Interest= =A1*3.5%/12	Principal Part= PMT - Interest	Ending balance = Beginning Balance - Principal Part of PMT
1	250000	$2,472.15	729.1667	$1,742.98	$248,257.02
2	$248,257.02	$2,472.15	724.083	$1,748.06	$246,508.96
3	$246,508.96	$2,472.15	718.9845	$1,753.16	$244,755.79
4	$244,755.79	$2,472.15	713.8711	$1,758.28	$242,997.52
5	$242,997.52	$2,472.15	708.7428	$1,763.40	$241,234.11
6	$241,234.11	$2,472.15	703.5995	$1,768.55	$239,465.57
7	$239,465.57	$2,472.15	698.4412	$1,773.71	$237,691.86
8	$237,691.86	$2,472.15	693.2679	$1,778.88	$235,912.98
9	$235,912.98	$2,472.15	688.0795	$1,784.07	$234,128.92
10	$234,128.92	$2,472.15	682.876	$1,789.27	$232,339.65
11	$232,339.65	$2,472.15	677.6573	$1,794.49	$230,545.16
12	$230,545.16	$2,472.15	672.4234	$1,799.72	$228,745.43
13	$228,745.43	$2,472.15	667.1742	$1,804.97	$226,940.46
14	$226,940.46	$2,472.15	661.9097	$1,810.24	$225,130.22
15	$225,130.22	$2,472.15	656.6298	$1,815.52	$223,314.71
16	$223,314.71	$2,472.15	651.3346	$1,820.81	$221,493.89
17	$221,493.89	$2,472.15	646.0239	$1,826.12	$219,667.77
18	$219,667.77	$2,472.15	640.6977	$1,831.45	$217,836.32
19	$217,836.32	$2,472.15	635.3559	$1,836.79	$215,999.53
20	$215,999.53	$2,472.15	629.9986	$1,842.15	$214,157.38
21	$214,157.38	$2,472.15	624.6257	$1,847.52	$212,309.86
22	$212,309.86	$2,472.15	619.2371	$1,852.91	$210,456.95
23	$210,456.95	$2,472.15	613.8328	$1,858.31	$208,598.64
24	$208,598.64	$2,472.15	608.4127	$1,863.73	$206,734.90
25	$206,734.90	$2,472.15	602.9768	$1,869.17	$204,865.74
26	$204,865.74	$2,472.15	597.5251	$1,874.62	$202,991.11
27	$202,991.11	$2,472.15	592.0574	$1,880.09	$201,111.02
28	$201,111.02	$2,472.15	586.5738	$1,885.57	$199,225.45
29	$199,225.45	$2,472.15	581.0742	$1,891.07	$197,334.38
30	$197,334.38	$2,472.15	575.5586	$1,896.59	$195,437.79
31	$195,437.79	$2,472.15	570.0269	$1,902.12	$193,535.67
32	$193,535.67	$2,472.15	564.479	$1,907.67	$191,628.00
33	$191,628.00	$2,472.15	558.915	$1,913.23	$189,714.77
34	$189,714.77	$2,472.15	553.3348	$1,918.81	$187,795.96
35	$187,795.96	$2,472.15	547.7382	$1,924.41	$185,871.55
36	$185,871.55	$2,472.15	542.1254	$1,930.02	$183,941.53
37	$183,941.53	$2,472.15	536.4961	$1,935.65	$182,005.88
38	$182,005.88	$2,472.15	530.8505	$1,941.30	$180,064.58
39	$180,064.58	$2,472.15	525.1884	$1,946.96	$178,117.62
40	$178,117.62	$2,472.15	519.5097	$1,952.64	$176,164.99
41	$176,164.99	$2,472.15	513.8145	$1,958.33	$174,206.66
42	$174,206.66	$2,472.15	508.1027	$1,964.04	$172,242.61
43	$172,242.61	$2,472.15	502.3743	$1,969.77	$170,272.84
44	$170,272.84	$2,472.15	496.6291	$1,975.52	$168,297.32
45	$168,297.32	$2,472.15	490.8672	$1,981.28	$166,316.04
46	$166,316.04	$2,472.15	485.0885	$1,987.06	$164,328.98
47	$164,328.98	$2,472.15	479.2929	$1,992.85	$162,336.13
48	$162,336.13	$2,472.15	473.4804	$1,998.67	$160,337.46
49	$160,337.46	$2,472.15	467.6509	$2,004.50	$158,332.97
50	$158,332.97	$2,472.15	461.8045	$2,010.34	$156,322.63
51	$156,322.63	$2,472.15	455.941	$2,016.21	$154,306.42
52	$154,306.42	$2,472.15	450.0604	$2,022.09	$152,284.33
53	$152,284.33	$2,472.15	444.1626	$2,027.98	$150,256.35
54	$150,256.35	$2,472.15	438.2477	$2,033.90	$148,222.45
55	$148,222.45	$2,472.15	432.3155	$2,039.83	$146,182.62
56	$146,182.62	$2,472.15	426.366	$2,045.78	$144,136.84
57	$144,136.84	$2,472.15	420.3991	$2,051.75	$142,085.09
58	$142,085.09	$2,472.15	414.4149	$2,057.73	$140,027.36
59	$140,027.36	$2,472.15	408.4131	$2,063.73	$137,963.63
60	$137,963.63	$2,472.15	402.3939	$2,069.75	$135,893.87
61	$135,893.87	$2,472.15	396.3571	$2,075.79	$133,818.08
62	$133,818.08	$2,472.15	390.3027	$2,081.84	$131,736.24
63	$131,736.24	$2,472.15	384.2307	$2,087.92	$129,648.32
64	$129,648.32	$2,472.15	378.1409	$2,094.01	$127,554.32
65	$127,554.32	$2,472.15	372.0334	$2,100.11	$125,454.20
66	$125,454.20	$2,472.15	365.9081	$2,106.24	$123,347.97
67	$123,347.97	$2,472.15	359.7649	$2,112.38	$121,235.58
68	$121,235.58	$2,472.15	353.6038	$2,118.54	$119,117.04
69	$119,117.04	$2,472.15	347.4247	$2,124.72	$116,992.32
70	$116,992.32	$2,472.15	341.2276	$2,130.92	$114,861.40
71	$114,861.40	$2,472.15	335.0124	$2,137.13	$112,724.27
72	$112,724.27	$2,472.15	328.7791	$2,143.37	$110,580.90
73	$110,580.90	$2,472.15	322.5276	$2,149.62	$108,431.28
74	$108,431.28	$2,472.15	316.2579	$2,155.89	$106,275.39
75	$106,275.39	$2,472.15	309.9699	$2,162.18	$104,113.21
76	$104,113.21	$2,472.15	303.6635	$2,168.48	$101,944.73
77	$101,944.73	$2,472.15	297.3388	$2,174.81	$99,769.92
78	$99,769.92	$2,472.15	290.9956	$2,181.15	$97,588.77
79	$97,588.77	$2,472.15	284.6339	$2,187.51	$95,401.26
80	$95,401.26	$2,472.15	278.2537	$2,193.89	$93,207.37
81	$93,207.37	$2,472.15	271.8548	$2,200.29	$91,007.07
82	$91,007.07	$2,472.15	265.4373	$2,206.71	$88,800.36
83	$88,800.36	$2,472.15	259.0011	$2,213.15	$86,587.22
84	$86,587.22	$2,472.15	252.5461	$2,219.60	$84,367.62
85	$84,367.62	$2,472.15	246.0722	$2,226.07	$82,141.54
86	$82,141.54	$2,472.15	239.5795	$2,232.57	$79,908.98
87	$79,908.98	$2,472.15	233.0678	$2,239.08	$77,669.90
88	$77,669.90	$2,472.15	226.5372	$2,245.61	$75,424.29
89	$75,424.29	$2,472.15	219.9875	$2,252.16	$73,172.13
90	$73,172.13	$2,472.15	213.4187	$2,258.73	$70,913.40
91	$70,913.40	$2,472.15	206.8308	$2,265.32	$68,648.09
92	$68,648.09	$2,472.15	200.2236	$2,271.92	$66,376.16
93	$66,376.16	$2,472.15	193.5971	$2,278.55	$64,097.61
94	$64,097.61	$2,472.15	186.9514	$2,285.20	$61,812.42
95	$61,812.42	$2,472.15	180.2862	$2,291.86	$59,520.56
96	$59,520.56	$2,472.15	173.6016	$2,298.55	$57,222.01
97	$57,222.01	$2,472.15	166.8975	$2,305.25	$54,916.76
98	$54,916.76	$2,472.15	160.1739	$2,311.97	$52,604.79
99	$52,604.79	$2,472.15	153.4306	$2,318.72	$50,286.07
100	$50,286.07	$2,472.15	146.6677	$2,325.48	$47,960.60
101	$47,960.60	$2,472.15	139.8851	$2,332.26	$45,628.33
102	$45,628.33	$2,472.15	133.0826	$2,339.06	$43,289.27
103	$43,289.27	$2,472.15	126.2604	$2,345.89	$40,943.38
104	$40,943.38	$2,472.15	119.4182	$2,352.73	$38,590.65
105	$38,590.65	$2,472.15	112.5561	$2,359.59	$36,231.06
106	$36,231.06	$2,472.15	105.6739	$2,366.47	$33,864.59
107	$33,864.59	$2,472.15	98.77172	$2,373.37	$31,491.22
108	$31,491.22	$2,472.15	91.84938	$2,380.30	$29,110.92
109	$29,110.92	$2,472.15	84.90685	$2,387.24	$26,723.68
110	$26,723.68	$2,472.15	77.94406	$2,394.20	$24,329.48
111	$24,329.48	$2,472.15	70.96097	$2,401.19	$21,928.29
112	$21,928.29	$2,472.15	63.95751	$2,408.19	$19,520.10
113	$19,520.10	$2,472.15	56.93363	$2,415.21	$17,104.89
114	$17,104.89	$2,472.15	49.88926	$2,422.26	$14,682.63
115	$14,682.63	$2,472.15	42.82434	$2,429.32	$12,253.31
116	$12,253.31	$2,472.15	35.73882	$2,436.41	$9,816.90
117	$9,816.90	$2,472.15	28.63263	$2,443.51	$7,373.39
118	$7,373.39	$2,472.15	21.50571	$2,450.64	$4,922.75
119	$4,922.75	$2,472.15	14.35801	$2,457.79	$2,464.96
120	$2,464.96	$2,472.15	7.189459	$2,464.96	($0.00)

Best of Luck. God Bless

jeff jeffy answered 2 years ago

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