A person received a SAR250,000 loan from a bank at %7 for three years, which is payable in monthly installments (end of the month), on a declining basis.
Required:
1. Prepare a schedule containing month, principal amount, interest amount, and a monthly premium for the three years (use excel function and references’ cells in these functions)
2. According to the person's capability, he/she can’t pay more than SAR5,000 monthly, what is the new period of this loan without changing the amount loan?
3. According to the person's capability, he/she can’t pay more than SAR5,000 monthly, what is the new loan amount that will be payable in three years at monthly basis?
4. What is the easiest option that can be used in sub-questions 2 & 3, explain this option and present other three examples that an accountant can be used in his/her work.