Question

Crab State Bank has offered you a $1,250,000 5-year loan at an interest rate of 10.25 percent, requiring equal annual end-of-year payments that include both principal and interest on the unpaid balance. Develop an amortization schedule for this loan. Round your answers to the nearest dollar.

End of Year Payment Interest (10.25%) Principal Reduction Balance Remaining

0 $1,250,000

1 $ $ $

2

3

4

5

Answer #1

Amortization Schedule

Loan amount | $1,250,000 | |||

Loan term (in years) | 5 | |||

Interest rate | 10.25% | |||

End of year payment | $331,855 | |||

Year | End of year payment | Interest | Principal reduction | Balance Remaining |

0 | $1,250,000 | |||

1 | $331,855 | $128,125 | $203,730 | $1,046,270 |

2 | $331,855 | $107,243 | $224,613 | $821,657 |

3 | $331,855 | $84,220 | $247,636 | $574,021 |

4 | $331,855 | $58,837 | $273,018 | $301,003 |

5 | $331,855 | $30,853 | $301,003 | $0 |

Total | $1,659,277 | $409,277 | $1,250,000 |

Calculations

Crab State Bank has offered you a $1,250,000 5-year loan at an
interest rate of 10.25 percent, requiring equal annual end-of-year
payments that include both principal and interest on the unpaid
balance. Develop an amortization schedule for this loan. Round your
answers to the nearest dollar. End of Year Payment Interest
(10.25%) Principal Reduction Balance Remaining 0 $1,250,000 1 $ $ $
2 3 4 5
can you explain the steps please.

Develop an amortization schedule for the loan described. (Round
your answers to the nearest cent.)
$230,000 for 3 years at 6% compounded annually
Period
Period
Payment
Interest
Balance Reduction
Unpaid Balance
1
$
$
$
$230,000
2
$
$
$
$
3
$
$
$
$0.00
Payment Interest Balance Reduction Unpaid Balance

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interest rate of 5% p.a., to be repaid in four annual installments.
The loan requires that you make total payments of $300 at t = 1,
$400 at t = 2, and $300 at t = 3, with the remaining loan balance
paid at maturity. What is the total payment amount at t = 4,
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Develop an amortization schedule for the loan described. (Round
your answers to the nearest cent.)
$35,000 for 1 year at 12% compounded quarterly
Period
Payment
Interest
Balance
Reduction
Unpaid
Balance
$35,000
1
$
$
$
$
2
$
$
$
$
3
$
$
$
$
4
$
$
$

Develop an amortization schedule for the loan described. (Round
your answers to the nearest cent.)
$35,000 for 1 year at 12% compounded quarterly
Period
Payment
Interest
Balance
Reduction
Unpaid
Balance
$35,000
1
$
$
$
$
2
$
$
$
$
3
$
$
$
$
4
$
$
$

Develop an amortization schedule for the loan described. (Round
your answers to the nearest cent.)
$20,000 for 1 year at 12% compounded quarterly
Period
Payment
Interest
Balance
Reduction
Unpaid
Balance
$20,000
1
$
$
$
$
2
$
$
$
$
3
$
$
$
$
4
$
$
$
$0.00

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Year
Beginning Balance
Total Payment
Interest Payment
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Ending Balance...

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