Question: Goal-seek Loan Amortization Schedule Amount of the loan: $500,000 Length of the loan: 30 years Payment: Equal annual payment Interest rate: Annual interest rate is

Goal-seek Loan Amortization Schedule

  • Amount of the loan: $500,000
  • Length of the loan: 30 years
  • Payment: Equal annual payment
  • Interest rate: Annual interest rate is 3.0% in year 1, and increases at 0.1% increment every year after that. So Year 2's rate will be 3.1%, Year 3's rate will be 3.2%, etc.(It's a simple addition, each following year's rate will be previous year's rate + 0.1%)

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