Create the amortization schedule for a loan of $5,600, paid monthly over two years usingan APR of 8 percent. Enter the data for the first three months.Note: Round your answers to 2 decimal places.Month123BeginningBalanceTotal PaymentInterest PaidPrincipal Paid Ending Balance

Present value of annuity is computed by following formula:-PV = A*wherePV = present value of…

Answered: Create the amortization schedule for a…

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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On January 1, 20X1, Bouncy House, Inc. obtains a $50,000, 6 year, 8% installment note for the latest and greatest bouncy house. Bouncy House is required to make annual payments. The first payment occurs on December 31, 20X1. а. Calculate your annual payment amount. b. Create the loan amortization schedule (table). Record the first three journal entries. d. How much total interest does Bouncy House pay on this installment note? С.
(b) A home loan of $300,000 is to be repaid by equal monthly instalments (at the end of each month) of $1753.77 for 25 years (300 months) with an interest rate of 5% p.a. compounded monthly. The following table shows three rows from the amortisation schedule. Compute the missing entries in the last row of the table (Month 150). Give your answers rounded to two decimal places. Month Monthly Payment Principal Repayment Outstanding Balance Interest Payment 300000 149 1753.77 196254.03 150 1753.77 (c) How much money must be deposited now to provide a perpetuity with installed? Download Now
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Create the amortization schedule for a loan of $5,600, paid monthly over two years using an APR of 8 percent. Enter the data for the first three months. Note: Round your answers to 2 decimal places. Month 1 2 3 Beginning Balance Total Payment Interest Paid Principal Paid Ending Balance