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You take out an amortized loan for $10,000. The loan is to be paid in equal...

You take out an amortized loan for $10,000. The loan is to be paid in equal installments at the end of each of the next 5 years. The interest rate is 8%. Construct an amortization schedule.

A. Calculate the PV of $100 due in 5 years compounded daily at 12%.
B. Calculate the FV of $1000 due in 3 years at 6% compounded quarterly.
C. Calculate the FVA of $300 due at the end of each of the next 5 years at 4%.
D. Calculate the PVA of $300 due at the end of each of the next 5 years at 4%.

Compute the EAR of 10% compounded daily.

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Answer #1

The amortization schedule is prepared by using excel. All the formulas and calculations are shown in the pic given below. The amount of annuity is $2,504.56 at the end of each year.

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