A $750,000 loan is to be repaid over 8-years. The interest rate on the loan i(4)...
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A $750,000 loan is to be repaid over 8-years. The interest rate on the loan i(4) = 6.5%. (a) Set up a repayment schedule assuming the loan is amortized with quarterly payments over the 8 years. (b) Assume the loan is paid back using the sinking fund method and assume a sinking fund can earn (4) = 4.2%. Set up a sinking fund schedule include a column for the quarterly expense and the book value. (c) Graph the outstanding balance of the amortized loan and the book value of the sinking fund loan on the same graph. A $750,000 loan is to be repaid over 8-years. The interest rate on the loan i(4) = 6.5%. (a) Set up a repayment schedule assuming the loan is amortized with quarterly payments over the 8 years. (b) Assume the loan is paid back using the sinking fund method and assume a sinking fund can earn (4) = 4.2%. Set up a sinking fund schedule include a column for the quarterly expense and the book value. (c) Graph the outstanding balance of the amortized loan and the book value of the sinking fund loan on the same graph. A $750,000 loan is to be repaid over 8-years. The interest rate on the loan i(4) = 6.5%. (a) Set up a repayment schedule assuming the loan is amortized with quarterly payments over the 8 years. (b) Assume the loan is paid back using the sinking fund method and assume a sinking fund can earn (4) = 4.2%. Set up a sinking fund schedule include a column for the quarterly expense and the book value. (c) Graph the outstanding balance of the amortized loan and the book value of the sinking fund loan on the same graph. A $750,000 loan is to be repaid over 8-years. The interest rate on the loan i(4) = 6.5%. (a) Set up a repayment schedule assuming the loan is amortized with quarterly payments over the 8 years. (b) Assume the loan is paid back using the sinking fund method and assume a sinking fund can earn (4) = 4.2%. Set up a sinking fund schedule include a column for the quarterly expense and the book value. (c) Graph the outstanding balance of the amortized loan and the book value of the sinking fund loan on the same graph.
Expert Answer:
Answer rating: 100% (QA)
Loan Repayment Schedules Heres a breakdown of the repayment schedules for both amortization and sinking fund methods a Amortized Loan Schedule Quarter ... View the full answer
Related Book For
Multinational Finance Evaluating Opportunities Costs and Risks of Operations
ISBN: 978-1118270127
5th edition
Authors: Kirt C. Butler
Posted Date:
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