Question

On January 1, 2014, Peyton Manning Company borrows $25,000 on a 6%, 3-year long-term installment notes...

On January 1, 2014, Peyton Manning Company borrows $25,000 on a 6%, 3-year long-term installment notes payable. The note is to be paid on equal semi-annual installments starting on January 1, 2014. Each payment includes principal and interest.

1) Calculate the payment amount

PMT = $

2) Create an amortization schedule

1/1 and 7/1 through 2014 through 2016

Business   Accounting   
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Homework Answers

Answer #1
Req 1.
Amount borrowed on Instalment note payable 25000
Divide: Annuity PVF at 3% for 6 periods 5.417191
Semi annual Payment 4614.94
Req 2.
Amort Chart
Date Paymentt Interest Principal Carryiing
Included Repaid Amount
01.01.14 25000.00
01.07.14 4614.94 750.00 3864.94 21135.06
01.01.15 4614.94 634.05 3980.89 17154.17
01.07.15 4614.94 514.63 4100.31 13053.86
01.01.16 4614.94 391.62 4223.32 8830.53
01.07.16 4614.94 264.92 4350.02 4480.51
01.01.17 4614.94 134.43 4480.51 0.00
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