Question on amortization schedule

Assignment Help Finance Basics
Reference no: EM1330127

a. I need to set up an amortization schedule for a $25,000 loan to be repaid in equal installments at the end of the next 5 years. The interest rate is 10% compounded annually.

b. How large must each annual payment be if the loan is for $50,000? Assume that the interst rate remains at 10%, compounded annually, and that the loan is paid off over 5 years.

c. How large must each payment be if the loan is for $50,000, the interest rate is 10%, compounded annually, and the loan is paid off in equal installments at the end of each of the next 10 years? This loan is for the same amount as the loan in part b, but the payments are spread out over twice as many periods. Why are these payments not half as large as the payments on the loan in part b?

Reference no: EM1330127

Questions Cloud

Explain about personal and professional conflict : Personal and Professional Conflict - What are possible conflicts that you may experience in the workplace and in your personal life?
Describe equal employment opportunity : Equal Employment Opportunity (EEO) and Sexual Harassment - Want assistance to identify the legal concept and discuss the implications for HRM.
What are the systematic, corporate and individual issues : What are the systematic, corporate and individual issues raised by this case? If not then what?
Difference among concretionary and fiscal policy : Illustrtae the difference among concretionary and expansionary fiscal policy.
Question on amortization schedule : I need to set up the amortization schedule for $25,000 loan to be repaid in equal installments at the end of next 5 years. The interest rate is 10% compounded annually.
Determine the target population : Determine the target population to be assessed and the purpose of the survey.
Pre-employment interview methods : Pre-Employment Interview Methods - Your boss asks you how she can improve the accuracy of pre-employment interviews.
Explain the largest markets where company products are sold : explain The largest markets where company products or services are sold and Strategies that the companies have used to grow
Do you think the nichepreneur strategy might work : Do you think the Nichepreneur strategy might work for Someone just out of college without any work experience or worldly experience, are they more likelyto find defeat and disappointment? Explain.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd