The owner of a small business borrows $40,000 on a 2-year contract at 5% interest compounded annually, with the loan to be repaid in two equal OY $22,587.80 installments. The first payment will be deferred one year. omplete the table below. (It is suggested that you construct a similar table, with your work shown either above or below. Note that you may ncounter roundoff errors.) A B Unpaid Bal bf Pmt C Int During Yr (Int) D E F Unpaid Int bf Pmt Amt Owed Loan Pmt (Duet) G Int Pmt (mt) H Prin Pmt (PPmt) 1 Unpaid Int aft Pmt (UIA) J Unpaid B aft Pm (UBA)
The owner of a small business borrows $40,000 on a 2-year contract at 5% interest compounded annually, with the loan to be repaid in two equal OY $22,587.80 installments. The first payment will be deferred one year. omplete the table below. (It is suggested that you construct a similar table, with your work shown either above or below. Note that you may ncounter roundoff errors.) A B Unpaid Bal bf Pmt C Int During Yr (Int) D E F Unpaid Int bf Pmt Amt Owed Loan Pmt (Duet) G Int Pmt (mt) H Prin Pmt (PPmt) 1 Unpaid Int aft Pmt (UIA) J Unpaid B aft Pm (UBA)
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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Please set up expressions initially with functional notation like P/F, i, n
Transcribed Image Text:7. The owner of a small business borrows $40,000 on a 2-year contract at 5% interest compounded annually, with the loan to be repaid in two equal
EOY $22,587.80 installments. The first payment will be deferred one year.
Complete the table below. (It is suggested that you construct a similar table, with your work shown either above or below. Note that you may
encounter roundoff errors.)
A
B
BOY
Unpaid Bal
bf Pmt
(UBB)
1 $40,000.00
2
3
Totals
C
Int During
Yr (Int)
D
Unpaid Int
bf Pmt
(UIB)
E
F
G
Amt Owed Loan Pmt Int Pmt
(AO)
(LPmt)
(IPmt)
$0.00
$22,587.80
$22,587.80
$45,175.60
H
Prin Pmt
(PPmt)
DELL
F8 F
1
J
Unpaid Unpaid Bal
Int aft
aft Pmt
(UBA)
Pmt (UIA)
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