In: Finance
Construct a detailed Fixed Loan Amortization schedule for a 2 year corporate equipment loan of $750,000.00, payable at a 7 1/2% annual interest rate, with payments scheduled to be made on a quarterly basis. This loan calls for the payback of $187,500.00 toward the principal with each scheduled payment. Note that the schedule may be off by several dollars due to rounding. The schedule should include the following parts, which you should put in the form of a table:
A) Beginning Balance B) Payment per Period C) Interest Paid D) Principal Paid E) Ending Balance
Even though it is 2 year corporate loan it gets paid off in year 1 because there will 4 quarterly payment of $187500 which matches to $750000 principal.
* Interest = Beginning Balance * 7.50%/4
* Payment Per Period = Interest + Principal repayment per payment
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