Suppose that you are a loan officer who is constructing the financial state- ments for a...
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Suppose that you are a loan officer who is constructing the financial state- ments for a farmer in Jackson County, Florida who produces cotton and soybeans on 1,920 acres of land. As a starting point, we will assume that the farmer inherited 640 acres from his grandfather in 2005. At the time that the estate was settled, the farmland was worth $ 2,500 per acre. He purchased the remaining acreage from a retiring farmer in 2015 at $3,250 per acre. The principal and interest schedule for the loan associated with the purchase in 2015 is presented in Table 1. Currently, the land is worth about $3,837.50 per acre. Table 1: Loan Payments and Balance on Farmland Loan [5.0%] Year Payment Interest Principal Balance 2015 4,160,000.00 2016 333,809.16 208,000.00 125,809.16 4,034,190.84 2017 333,809.16 201,709.54 132,099.62 3,902,091.22 2018 333,809.16 195,104.56 138,704.60 3,763,386.61 2019 333,809.16 188,169.33 145,639.83 3,617,746.78 2020 333,809.16 180,887.34 152,921.82 3,464,824.96 2021 333,809.16 173,241.25 160,567.91 3,304,257.04 2022 333,809.16 165,212.85 168,596.31 3,135,660.73 2023 333,809.16 156,783.04 177,026.13 2,958,634.61 2024 333,809.16 147,931.73 185,877.43 2,772,757.18 2,577,585.87 2025 333,809.16 138,637.86 195,171.30 2026 333,809.16 128,879.29 204,929.87 2,372,656.00 2027 333,809.16 118,632.80 215,176.36 2,157,479.64 2028 333,809.16 107,873.98 225,935.18 1,931,544.46 2029 333,809.16 96,577.22 237,231.94 1,694,312.52 2030 333,809.16 84,715.63 249,093.54 1,445,218.98 2031 333,809.16 72,260.95 261,548.21 1,183,670.77 2032 333,809.16 59,183.54 274,625.62 909,045.14 2033 333,809.16 45,452.26 288,356.91 620,688.24 2034 333,809.16 31,034.41 302,774.75 317,913.49 2035 333,809.16 15,895.67 317,913.49 0.00 Suppose that you are a loan officer who is constructing the financial state- ments for a farmer in Jackson County, Florida who produces cotton and soybeans on 1,920 acres of land. As a starting point, we will assume that the farmer inherited 640 acres from his grandfather in 2005. At the time that the estate was settled, the farmland was worth $ 2,500 per acre. He purchased the remaining acreage from a retiring farmer in 2015 at $3,250 per acre. The principal and interest schedule for the loan associated with the purchase in 2015 is presented in Table 1. Currently, the land is worth about $3,837.50 per acre. Table 1: Loan Payments and Balance on Farmland Loan [5.0%] Year Payment Interest Principal Balance 2015 4,160,000.00 2016 333,809.16 208,000.00 125,809.16 4,034,190.84 2017 333,809.16 201,709.54 132,099.62 3,902,091.22 2018 333,809.16 195,104.56 138,704.60 3,763,386.61 2019 333,809.16 188,169.33 145,639.83 3,617,746.78 2020 333,809.16 180,887.34 152,921.82 3,464,824.96 2021 333,809.16 173,241.25 160,567.91 3,304,257.04 2022 333,809.16 165,212.85 168,596.31 3,135,660.73 2023 333,809.16 156,783.04 177,026.13 2,958,634.61 2024 333,809.16 147,931.73 185,877.43 2,772,757.18 2,577,585.87 2025 333,809.16 138,637.86 195,171.30 2026 333,809.16 128,879.29 204,929.87 2,372,656.00 2027 333,809.16 118,632.80 215,176.36 2,157,479.64 2028 333,809.16 107,873.98 225,935.18 1,931,544.46 2029 333,809.16 96,577.22 237,231.94 1,694,312.52 2030 333,809.16 84,715.63 249,093.54 1,445,218.98 2031 333,809.16 72,260.95 261,548.21 1,183,670.77 2032 333,809.16 59,183.54 274,625.62 909,045.14 2033 333,809.16 45,452.26 288,356.91 620,688.24 2034 333,809.16 31,034.41 302,774.75 317,913.49 2035 333,809.16 15,895.67 317,913.49 0.00
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Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
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