Question 1: Amortization Schedule Untitled - Not.. To start your business, you take a loan of $20,000 at 6.25% compounded semi-annually. You want to settle the loan by making (end of) annual payments for five years. Answer the questions below about the scenario and provided (partial) amortization schedule for the loan. Show calculations for the second row and final payment only. A. Find the values for the following: a) CY= b) PY = c) Y = B. The loan payment is $4,792.92. Which formula was used to find this amount? Circle the correct answer. a) PVord b) FVord C. Interest for the first payment: Looking at the amortization schedule below, write out the formula and calculations used to find the interest, principal, and balance amounts for the first payment (row 2). Provide all steps and ensure your answer matches that in the table. Payment # Payment (PNT) Principal (PRN) Interest (Int) Balance (BAL) 20, 000 2. 1,045.88 3,747.04 3,984.89 12,729.57 8,744.68 4506.84 ZERO 4,792.92 4,792.92 808.03 4,792.92 4,792.92 4. 4,237.84 555.08 4506.84 286.08
Question 1: Amortization Schedule Untitled - Not.. To start your business, you take a loan of $20,000 at 6.25% compounded semi-annually. You want to settle the loan by making (end of) annual payments for five years. Answer the questions below about the scenario and provided (partial) amortization schedule for the loan. Show calculations for the second row and final payment only. A. Find the values for the following: a) CY= b) PY = c) Y = B. The loan payment is $4,792.92. Which formula was used to find this amount? Circle the correct answer. a) PVord b) FVord C. Interest for the first payment: Looking at the amortization schedule below, write out the formula and calculations used to find the interest, principal, and balance amounts for the first payment (row 2). Provide all steps and ensure your answer matches that in the table. Payment # Payment (PNT) Principal (PRN) Interest (Int) Balance (BAL) 20, 000 2. 1,045.88 3,747.04 3,984.89 12,729.57 8,744.68 4506.84 ZERO 4,792.92 4,792.92 808.03 4,792.92 4,792.92 4. 4,237.84 555.08 4506.84 286.08
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Q1 A
Transcribed Image Text:Question 1: Amortization Schedule
Untitled - Not.
To start your business, you take a loan of $20,000 at 6.25% compounded semi-annually. You
want to settle the loan by making (end of) annual payments for five years. Answer the
questions below about the scenario and provided (partial) amortization schedule for the loan.
Show calculations for the second row and final payment only.
A. Find the values for the following:
a) CY=
b) PY =
c) IY=
В.
The loan payment is $4,792.92. Which formula was used to find this amount? Circle the
correct answer.
a) PVord
b) FVord
C. Interest for the first payment: Looking at the amortization schedule below, write out
the formula and calculations used to find the interest, principal, and balance amounts
for the first payment (row 2). Provide all steps and ensure your answer matches that in
the table.
Payment #
Payment (PNT)
Principal (PRN)
Interest (Int)
Balance (BAL)
20, 000
1
12,729.57
8,744.68
4,792.92
4,792.92
4,792.92
4,792.92
3,747.04
3,984.89
4,237.84
4506.84
1,045.88
808.03
3.
4506.84
ZERO
4.
555.08
286.08
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