Use a spreadsheet to create amortization schedules for the following five scenarios. What happens to the total
Question:
Use a spreadsheet to create amortization schedules for the following five scenarios. What happens to the total interest paid under each scenario?
a. Scenario 1:
Loan amount: $1 million
Annual rate: 5 percent
Term: 360 months
Prepayment: $0
b. Scenario 2: Same as 1, except annual rate is 7 %
c. Scenario 3: Same as 1, except term is 180 months
d. Scenario 4: Same as 1, except prepayment is $250 per month
e. Scenario 5: Same as 1, except loan amount is $125,000
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Related Book For
Introduction to Corporate Finance What Companies Do
ISBN: 978-1111222284
3rd edition
Authors: John Graham, Scott Smart
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