Question

Cupcake Essentials has a large piece of equipment they purchased for 20. If the market interest rate was 4%, can you please write the amortization schedule after 10 years in service?

Answer 1

LOAN AMORTIZATION SCHEDULE

year	beginning balance	total payment	interest	principle	ending balance
1	20	2.47	0.80	1.67	18.33
2	18.33	2.47	0.73	1.74	16.59
3	16.59	2.47	0.66	1.81	14.79
4	14.79	2.47	0.59	1.88	12.91
5	12.91	2.47	0.52	1.95	10.95
6	10.95	2.47	0.44	2.03	8.92
7	8.92	2.47	0.36	2.11	6.81
8	6.81	2.47	0.27	2.20	4.61
9	4.61	2.47	0.18	2.29	2.33
10	2.33	2.33	-	2.33	-
total	-	24.55673	4.56	20.00	-

Interest paid = opening balance*4/100

Total payment =Interest +principle

Ending balance = Begging balance - principle

Its is assumed that interest rate is 4% p.a componded annually

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