Loan amount: $20,000 Annual Interest rate: 5% Life of loan in years: 5 Need to calculate in excell the following: For the initial payment, how much of it is principal? (I got 56.56 is that correct?) For the initial payment, how much of it is interset? (I got 1000, I dont think that is right but pls confirm) For the final payment, how much of it is principal? (I got 68.75 is that correct?) For the final payment, how much of it is interest? (I got 219.98 is that correct?)
Risk and return
Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary.
Capital Asset Pricing Model
Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.
Loan amount: $20,000
Annual Interest rate: 5%
Life of loan in years: 5
Need to calculate in excell the following:
For the initial payment, how much of it is principal? (I got 56.56 is that correct?)
For the initial payment, how much of it is interset? (I got 1000, I dont think that is right but pls confirm)
For the final payment, how much of it is principal? (I got 68.75 is that correct?)
For the final payment, how much of it is interest? (I got 219.98 is that correct?)
Thank you!
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