Construct an amortization schedule for the term loan

Assignment Help Finance Basics

Reference no: EM133249345

Question - At the completion of construction, a project's final construction loan balance was US$1000. This amount must be amortized over the term of a 15-year loan with an annual fixed interest rate of 6.85%. Cash flow available for debt service will be US$128 in the first year of the project's operation (which will be the first year of amortization of the 15-year term loan) and is projected to increase at a rate of 5% per year. Please construct an amortization schedule for the term loan that produces (1) a minimum (pre-tax) debt service coverage ratio of at least 1.50 for each year of the loan and (2) an aggregate (pre-tax) debt service coverage ratio of at least 1.55.

Reference no: EM133249345

Questions Cloud

Would the volume be different if the sample : 1. What volume is occupied by 18.0 g of argon gas at a pressure of 1.44atm and a temperature of 359 K ?

What is the wacc for the company : Common stock: 2,200 shares of common stock; the current price is $71, and the beta of the stock is 1.45. What is the WACC for the company

Difference between typical and atypical antipsychotic : NSG552 Wilkes University Difference between typical and atypical antipsychotic. Include relevant pharmacokinetics and pharmacodynamics and the implications

Which category do you think would be most difficult for you : NEP 1310 University of Missouri, Which category do you think would be most difficult for you to adjust to while visiting another culture?

Construct an amortization schedule for the term loan : Please construct an amortization schedule for the term loan that produces (1) a minimum (pre-tax) debt service coverage ratio of at least 1.50 for each year

Find a baking recipe that calls for baking powder : Find a baking recipe that calls for baking powder but not baking soda (you many need to use the Internet as a reference for the recipe).

Discuss the predictive ability of the test : NR 503 Chamberlain College of Nursing discuss the predictive ability of the test. For instance, how do you know the test is reliable and valid?

What is the expected future value : Question - Assume that you have a lump sum $ 882 that you are investing for 3 years at a nominal rate of 11 %. What is the expected Future Value

What do you think are the two most common modifiers : What do you think are the two most common modifiers used with codes from the musculoskeletal subsection? Explain why and what each modifier identifies

User Account

All Pages