In: Finance
Please show your work and formula on excel sheet. Thank you.
Assume you borrow $8,000,000 with a coupon rate of 8% from a bank as a mortgage against your newly renovated plant. The loan is paid off in 7 years. You will pay an equal amount every year until the loan is fully paid off. What are the interest and principal payments for each year of the loan.
The loan amortization schedule is shown in the excel sheet below
Column D has the interest payment
Column E has the principal payment
The screenshot below shows the formulas used in each cell