Question

In: Finance

You just took a $90,000, 10 years loan. The annual percentage rate (APR) is 8%. You...

You just took a $90,000, 10 years loan. The annual percentage rate (APR) is 8%. You are obligated to pay a flat payment at the end of each QUARTER. (a) Make a loan amortization table; (b) Plot a figure to show the flat payment, payment to interest, and payment in each quarter. SHOW IN EXCEL PLEASE

Solutions

Expert Solution

Amortization Schedule
$90,000.00 at 8% interest
with 40 quarterly payments
at Constant Principal Payments of $2250
Total Payments: $126,900.00 Total Interest: $36,900.00
PERIOD PAYMENT PRINCIPAL INTEREST BALANCE OWED
1 4050 2250 1800 87750
2 4005 2250 1755 85500
3 3960 2250 1710 83250
4 3915 2250 1665 81000
5 3870 2250 1620 78750
6 3825 2250 1575 76500
7 3780 2250 1530 74250
8 3735 2250 1485 72000
9 3690 2250 1440 69750
10 3645 2250 1395 67500
11 3600 2250 1350 65250
12 3555 2250 1305 63000
13 3510 2250 1260 60750
14 3465 2250 1215 58500
15 3420 2250 1170 56250
16 3375 2250 1125 54000
17 3330 2250 1080 51750
18 3285 2250 1035 49500
19 3240 2250 990 47250
20 3195 2250 945 45000
21 3150 2250 900 42750
22 3105 2250 855 40500
23 3060 2250 810 38250
24 3015 2250 765 36000
25 2970 2250 720 33750
26 2925 2250 675 31500
27 2880 2250 630 29250
28 2835 2250 585 27000
29 2790 2250 540 24750
30 2745 2250 495 22500
31 2700 2250 450 20250
32 2655 2250 405 18000
33 2610 2250 360 15750
34 2565 2250 315 13500
35 2520 2250 270 11250
36 2475 2250 225 9000
37 2430 2250 180 6750
38 2385 2250 135 4500
39 2340 2250 90 2250
40 2295 2250 45 0

Therefore the flat payment at the end of each quarter would be 2250 with the all details shown in the table given above.

TERHE


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