Question: Problem 1------ Loan Amortization Table You plan to take out a $20,000 term loan from your bank. It will be repaid over a 4-year period

Problem 1------

Loan Amortization Table

You plan to take out a $20,000 term loan from your bank. It will be repaid over a 4-year period an charges an a rate of interest of 8%.

Assume that you have to make 4 equal annual payments.

Create a loan amortization table that show the Payment each year, the Interest portion each payment, the Principal portion of each payment and the Balance of the loan at the end of each year.

Problem 2 ------ Effective Rate of Interest

Using the data from Problem 1, assume that the bank will also charge you a loan origination fee of 5% of the original loan amount.
What is the effective rate of interest on the loan?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

PROBLEM 1 - LOAN AMORTIZATION (30 points) Part 1 - Acme Manufacturing is considering pursuing debt to help it finance some of its new capital expenditures. To help the company assess whether or not...

Please Help, my team and I have different answers. Problem 6.34 Present Value Tirade Owens, a professional athlete, currently has a contract that will pay him a large amount in the first year of his...

I am short on time and need assignment 6.34 done, before 6 if possible. If someone can help. Problem 6.34 Present Value Tirade Owens, a professional athlete, currently has a contract that will pay...

Directions for Problem #4 in Excel The goal of this problem is to have you: Use Excel to generate the future value of each of the various investments made over the course of the 25 years. Use Excel...

Math 1172 Project #2 Financial Applications of Geometric Series Due: Tuesday, October 11 Name(s): - - - - - - - - - - - - - - - - - - - - Description - - - - - - - - - - - - - - - - - - - Most people...

You will start by constructing an amortization schedule Your dream is finally coming true! You've saved and saved and are about to become a homeowner! After a conversation with your banker, you've...

Looking at the Problem 6.37 tab, I am trying to figure out how to find the Desired first year retirement income adjusted for inflation, Return on portfolio investment, and the amount needed to fund...

need as an excel sheet asap. thanks :) + Subject Property 5 This is a Class B duplex in Gainesville that you plan to renovate before leasing out to students in order to command 6 higher rents. You...

Name and submit your completed case study file as BudgetModuleLastnameFirstname if two members or BudgetModuleTeam# if working in your team. Before starting, you are encouraged to plan your file set...

I NEED HELP FINDING THE ARM PLEASE!!! WITH THE INFORMATION ABOVE! Wildcat Investment Company, LLC decided to purchase the investment property at 2912 N. Main Street. You have been asked to complete...

The EPA is concerned about the quality of drinking water served on airline fights. A sample of 112 fights found unacceptable bacterial contamination on 14 fights. (a) At = .05, does this sample show...

Using ethanol as the source of all the carbon atoms, describe efficient syntheses of each of the following, using any necessary organic or inorganic reagents: (a) CH3CH(OCH2CH3)2 (b) (c) (d). (e)...

The AICPA Code outlines threats and safeguards that strongly relate to the dilemma Helen is going through, such as the self - interest threat and the under - influence threat. The self - interest...

Philip Crosby believed that quality processes require significant investment and do not pay off in the long run. Group of answer choices True False

Review Figure 16.9, a scannable rsum illustrated in this chapter, and make a list of words that you believe to be keywords related to property management and marketing. (Objective 4)

Ethics. Teamwork. Technology. Read the scenario below; partner with a classmate to discuss the ethical questions following the scenario.Working together, write an e-mail to your instructor explaining...

Technology. Access job opportunities on the Internet for positions related to your career objective. Assess the job opportunities in terms of your interest in them.Write a letter to your instructor...