Question

You borrowed $50,000 for your business today with an interest rate of 7.5%. Your first of...

You borrowed $50,000 for your business today with an interest rate of 7.5%. Your first of five (5) equal annual payments on this loan will be made one year from now.

PLEASE SHOW ALL EXCEL FORMULAS/FUNCTIONS

(A) What is your annual payment on this loan?

(B) Create an amortization table for this loan. The headings and periods (years) for the amortization table are provided below.

Homework Answers

Answer #1
Amount borrowed 50000
Divide: Annuity PVF at 7.50% for 5yrs 4.04588
Annual Payment 12358.25
Amort Chart
Period Cash Interest Principle Principle
Interest Charged Repayment Amount outstanding at end
0 50000.00
1 12358.25 3750.00 8608.25 41391.75
2 12358.25 3104.38 9253.87 32137.88
3 12358.25 2410.34 9947.91 22189.97
4 12358.25 1664.25 10694.00 11495.97
5 12358.25 862.28 11495.97 0.00
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