. Consider a $140,000, 7-year loan at 5 percent interest. The loan agreement requires the firm to pay equal amounts of principal for each year plus interest and the loan to be paid in full at the end of year 7. Use excel to build a fixed principal payment amortization schedule
. Consider a $140,000, 7-year loan at 5 percent interest. The loan agreement requires the firm to pay equal amounts of principal for each year plus interest and the loan to be paid in full at the end of year 7. Use excel to build a fixed principal payment amortization schedule
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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1. Consider a $140,000, 7-year loan at 5 percent interest. The loan agreement requires the firm
to pay equal amounts of principal for each year plus interest and the loan to be paid in full at
the end of year 7. Use excel to build a fixed principal payment amortization schedule.
to pay equal amounts of principal for each year plus interest and the loan to be paid in full at
the end of year 7. Use excel to build a fixed principal payment amortization schedule.
2. Consider borrowing $250,000 to purchase a house at a 4% annual interest rate to be paid in
full in 15 years. Build a fixed payment monthly amortization schedule for the above loan.
What is the total amount of interest you will pay on the loan.
full in 15 years. Build a fixed payment monthly amortization schedule for the above loan.
What is the total amount of interest you will pay on the loan.
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