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.

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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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