A. Time Value of Money
1. Your client booked a $1 million receivable on the sale of a small business to be paid in $60,000 installments at the beginning of years one through three
no payments in Years four and five, followed by $75,000 payments at the end of Years six through eight, no payment in year nine, or tenfollowed by a $40,000 payment at end of Year 11
and a balloon payment at the end of Year twelve to be determined by you.
a. Please determine the amount of the balloon payment: (.50)
	Return rate	0.075
C0	C1	C2	C3	C4	C5	C6	C7	C8	C9	C10	C11	C12
	60,000	60,000	60,000			75,000	75,000	75,000	-	-	40,000
b. Please construct the amortization schedule below to zero-out at the end of Year 12. (1.50)
	Date	Interest	Pmt	Amt	Balance
	0
	1
	2
	3
	4
	5
	6
	7
	8
	9
	10
	11
	12