On October 1, 2014 Northstar Corp. borrowed $780,000 by signing a four-year installment note bearing interest...

 

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On October 1, 2014 Northstar Corp. borrowed $780,000 by signing a four-year installment note bearing interest at 9% Complete the installment note amortization schedule for this note assuming each payment requires equal total payments. Use the built-in PV functions for these calculations. Enter PV(n;) in a value box to calculate the present value of $1 over n compounding periods with a periodic rate of Similarly, use PVA(n;) to calculate the present value of an annuity. E.g., the present value of $1,000 with a periodic rate of 3% and 2 compounding periods can be entered as 1000 PV(2:3). To use the built-in PV functions to calculate the payment, the formula is Principal balance + PVA(n), where n= the number of payments and the interest rate. For example if $10,000 is borrowed by signing a four-year, 5% installment note. The note requires four equal payments of accrued interest and principal. Each of the four equal payments is calculated by entering the following in the value box: 10000/PVA(4:5), which equals payments of $2,820. Equal Total Payments Table Perod Ending Beginning Balance Periodic Interest Expense Reduction of Notes Payable Total Notes Payment Ending Balance September 30, 2015 September 30, 2016 September 30, 2017 September 30, 2018 Total On October 1, 2014 Northstar Corp. borrowed $780,000 by signing a four-year installment note bearing interest at 9% Complete the installment note amortization schedule for this note assuming each payment requires equal total payments. Use the built-in PV functions for these calculations. Enter PV(n;) in a value box to calculate the present value of $1 over n compounding periods with a periodic rate of Similarly, use PVA(n;) to calculate the present value of an annuity. E.g., the present value of $1,000 with a periodic rate of 3% and 2 compounding periods can be entered as 1000 PV(2:3). To use the built-in PV functions to calculate the payment, the formula is Principal balance + PVA(n), where n= the number of payments and the interest rate. For example if $10,000 is borrowed by signing a four-year, 5% installment note. The note requires four equal payments of accrued interest and principal. Each of the four equal payments is calculated by entering the following in the value box: 10000/PVA(4:5), which equals payments of $2,820. Equal Total Payments Table Perod Ending Beginning Balance Periodic Interest Expense Reduction of Notes Payable Total Notes Payment Ending Balance September 30, 2015 September 30, 2016 September 30, 2017 September 30, 2018 Total

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Amount Borrowed 780000 Interest Rate 900 Number of Payment... View the full answer