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$25,000.00 $5,030.00 $2,000.00 $2,510.00 2.60% semi-annually {A} {B} {C} {D} {E} {F} {G} {H} {0} Cost of Goods Sold Equipment Renovations Other Financing interest rate

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$25,000.00 $5,030.00 $2,000.00 $2,510.00 2.60% semi-annually {A} {B} {C} {D} {E} {F} {G} {H} {0} Cost of Goods Sold Equipment Renovations Other Financing interest rate Compounding periods per year (CY) Length of amortization (years) Savings/Surplus Property and vehicle cost Mortgage rate Term of mortgage Bond face value Time until maturity Bond rate 2 $31,250.00 $112,500.00 2.1% 5 $34,375.00 {K} {L) {M} {N} 1 2.3% PARTA Owners of a new restaurant have found numerous costs associated with starting their business (see table). They financed the total of these costs with end-of-month payments through a loan from the bank at (El compounded (f), amortized over (G) years Cost of Goods Sold (A) Equipment (B Renovations age L What is the size of the monthly payments required to settle this loon? Other 2. What is the principal balance outstanding on the loan after one year? 3. What is the size of the final payment? 4. Construct a partial amortization schedule for this loan PARTB After two years in business, the owners have saved (have a surplus of) (H) They must decide if they will invest in property or investment bonds if they invest in a property and a vehicle, the total cost will be 10. of which will be required as a down payment. The fixed interest rate on the mortgaged amount is ) compounded (F) for a term of (K) years 5. What is the size of the semi-annual payments required to settle this mortgago? a PARTB After two years in business, the owners have saved (have a surplus od) {). They must decide if they will invest in property or investment bonds it they invest in a property and a vehicle, the total cost will be ), of which (H) will be required as a down payment. The food interest rate on the mortgaged amount is ) compounded (F) for a term of (K) years 5. What is the size of the semi-annual payments required to settle this mortgage 6. What is the size of the final payment? 7. How long would it tako (in months) to settle this loan with regular monthly payments of exactly $2000 instead of the PMT value calculated in Part 2 PARTC if the owners choose to invest in bonds instead they look at o (1) bond not to mature in (M) years with a bond roto of (N), poyable serni-annually. The market rate is 13). compounded semi-annually. The owners wil only purchase the bond at they can afford it with their savings (IH) and they can get the bond at a discount becoute they think the market rate will go down potentially making the bond more valuable in the future B. If the bond rate is IN), will the bond be sold at a premium or a discount? Explain your answer. 9. Calculate the purchase price of the bond if it is purchased today (IM) years before maturity). 10. Do the owners have enough money to buy their bond? Will they make the purchase

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