Develop an amortization schedule for a 5-year loan of $25,000 at an interest rate of 7.5%,...

Develop an amortization schedule for a 5-year loan of $25,000 at an interest rate of 7.5%, assuming equal annual installments at the end of each year. Use the same format that we used in class.

Please show work in Excel

Expert Solution


Computation of equal payment
$6,179.12	=PMT(7.5%,5,-25000,0,0)


Amortization table as below

i	ii	iii=ii*7.5%	iv	v=ii+iii-iv
Year	Beginning loan amount	Interest	Annual installment	Ending loan amount
0				25000
1	25,000.00	1,875.00	6,179.12	20,695.88
2	20,695.88	1,552.19	6,179.12	16,068.96
3	16,068.96	1,205.17	6,179.12	11,095.01
4	11,095.01	832.13	6,179.12	5,748.02
5	5,748.02	431.10	6,179.12	-

jeff jeffy answered 1 year ago

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