Your company is planning to borrow $2.75 million on a 5-year, 16%, annual payment, fully amortized term loan. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. Amortization Loan amount $2,750,000 Term in years 5 Annual coupon rate 16.00% Calculation of Loan Payment Formula Loan payment = #N/A Loan Amortization Schedule Year Beginning Balance Payment Interest Principal Ending Balance 1 2 3 4 5 Formulas Loan Amortization Schedule Year Beginning Balance Payment Interest Principal Ending Balance 1 #N/A #N/A #N/A #N/A #N/A 2 #N/A #N/A #N/A #N/A #N/A 3 #N/A #N/A #N/A #N/A #N/A 4 #N/A #N/A #N/A #N/A #N/A 5 #N/A #N/A #N/A #N/A #N/A Percentage of 2nd Year Payment Representing Repayment of Principal #DIV/0! =E13/C13 What fraction of the payment made at the end of the second year will represent repayment of principal? Do not round intermediate calculations. Round your answer to two decimal places.
Your company is planning to borrow $2.75 million on a 5-year, 16%, annual payment, fully amortized term loan. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. Amortization Loan amount $2,750,000 Term in years 5 Annual coupon rate 16.00% Calculation of Loan Payment Formula Loan payment = #N/A Loan Amortization Schedule Year Beginning Balance Payment Interest Principal Ending Balance 1 2 3 4 5 Formulas Loan Amortization Schedule Year Beginning Balance Payment Interest Principal Ending Balance 1 #N/A #N/A #N/A #N/A #N/A 2 #N/A #N/A #N/A #N/A #N/A 3 #N/A #N/A #N/A #N/A #N/A 4 #N/A #N/A #N/A #N/A #N/A 5 #N/A #N/A #N/A #N/A #N/A Percentage of 2nd Year Payment Representing Repayment of Principal #DIV/0! =E13/C13 What fraction of the payment made at the end of the second year will represent repayment of principal? Do not round intermediate calculations. Round your answer to two decimal places.
Chapter16: Working Capital Policy And Short-term Financing
Section: Chapter Questions
Problem 14P
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Question
Your company is planning to borrow $2.75 million on a 5-year, 16%, annual payment, fully amortized term loan.
The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below.
| Amortization | |||||
| Loan amount | $2,750,000 | ||||
| Term in years | 5 | ||||
| Annual coupon rate | 16.00% | ||||
| Calculation of Loan Payment | Formula | ||||
| Loan payment = | #N/A | ||||
| Loan Amortization Schedule | |||||
| Year | Beginning Balance | Payment | Interest | Principal | Ending Balance |
| 1 | |||||
| 2 | |||||
| 3 | |||||
| 4 | |||||
| 5 | |||||
| Formulas | |||||
| Loan Amortization Schedule | |||||
| Year | Beginning Balance | Payment | Interest | Principal | Ending Balance |
| 1 | #N/A | #N/A | #N/A | #N/A | #N/A |
| 2 | #N/A | #N/A | #N/A | #N/A | #N/A |
| 3 | #N/A | #N/A | #N/A | #N/A | #N/A |
| 4 | #N/A | #N/A | #N/A | #N/A | #N/A |
| 5 | #N/A | #N/A | #N/A | #N/A | #N/A |
| Percentage of 2nd Year Payment Representing Repayment of Principal | #DIV/0! | =E13/C13 |
What fraction of the payment made at the end of the second year will represent repayment of principal? Do not round intermediate calculations. Round your answer to two decimal places.
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