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 9 months ago

AMORTIZATION SCHEDULE a. Complete an amortization schedule for a $25,000 loan to be repaid in equal...

AMORTIZATION SCHEDULE a. Complete an amortization schedule for a $25,000 loan to be repaid in equal installments at the end of each of the next three years. The interest rate is 8% compounded annually. Round all answers to the nearest cent. Beginning Repayment Ending Year Balance Payment Interest of Principal Balance 1 $ $ $ $ $ 2 3 b. What percentage of the payment represents interest and what percentage represents principal for each of the three years? Round all...

a)Prepare an amortization schedule for a 10-year loan of $300,000. The interest rate is 12% and...

a)Prepare an amortization schedule for a 10-year loan of $300,000. The interest rate is 12% and the loan calls for equal payments. How much interest is paid in the fifth year? How much interest is paid over the life of the loan? b)What is the present value of $2,625 per year at a discount rate of 8%, if the first payment is received six years from now and the last payment is received 20 years from now?

calculate a loan amortization schedule for a $10,000 loan, 5% annual interest, one payment a year...

calculate a loan amortization schedule for a $10,000 loan, 5% annual interest, one payment a year for 10 years, starting on 1/1/2010. All calculations must be shown, i.e., do not use a “package” to complete this question. Loan period starts from 1/1/2010. I mean the first payment is to be made on 1/1/2010.

Prepare an amortization schedule for a three-year loan of $111,000. The interest rate is 10 percent...

Prepare an amortization schedule for a three-year loan of $111,000. The interest rate is 10 percent per year, and the loan calls for equal annual payments. How much total interest is paid over the life of the loan? (Leave no cells blank. Enter '0' where necessary. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Year Beginning Balance Total Payment Interest Payment Principal Payment Ending Balance 1 $ 111000 $ $ $ $ 2...

Prepare an amortization schedule for a five-year loan of $84,000. The interest rate is 8% per...

Prepare an amortization schedule for a five-year loan of $84,000. The interest rate is 8% per year and the loan calls for equal annual payments. How much interest is paid in the third year? How much total interest is paid over the life of the loan? Provide another amortization schedule if you must pay $8,400 toward the principle each year instead of equal annual payments. How much interest is paid in the third year? Explain why the third year interest...

Prepare an amortization schedule for a five-year loan of $55,000. The interest rate is 8 percent...

Prepare an amortization schedule for a five-year loan of $55,000. The interest rate is 8 percent per year, and the loan calls for equal annual payments. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Leave no cells blank - be certain to enter "0" wherever required.) Year Beginning Balance Total Payment Interest Payment Principal Payment Ending Balance 1 $ $ $ $ $ 2 3 4 5 How...

Amortization with Equal Payments. Prepare an amortization schedule for a three-year loan of $57,000. The interest...

Amortization with Equal Payments. Prepare an amortization schedule for a three-year loan of $57,000. The interest rate is 8 percent per year, and the loan calls for equal annual payments. How much interest is paid in the third year? How much total interest is paid over the life of the loan?

Prepare amortization schedule for a five-year loan of $167,500. The interest rate is 17 percent per...

Prepare amortization schedule for a five-year loan of $167,500. The interest rate is 17 percent per year and the loan calls for equal annual payments. How much interest is paid in the third year? How much total interest is paid over the life of the loan? (No excel sheet)

Loan Amortization Schedule for Investment Interest rate Year Beginning Principal Principal Payment Interest Payment Ending principal...

Loan Amortization Schedule for Investment Interest rate Year Beginning Principal Principal Payment Interest Payment Ending principal Tax Savings 0.07 1 15,000 a. 1,050 b. c. 0.07 2 0.07 3 0.07 4 0.07 5 0.07 Fill in the blanks. Explain how to get the principal and ending principal.

What is a loan amortization schedule? How would you use it to determine your loan interest rate?...

What is a loan amortization schedule? How would you use it to determine your loan interest rate? In which months is most of the interest paid? Why? What is the percentage difference of interest paid with a 30-yr. loan vs. a 15-yr. loan as a percentage of the 15-yr. loan interest amount? What factors would affect your choice between two loans? Would making payments two weeks early each month make much difference in the total amount paid?

Question