Calculate in amortization table for the 5 annual loan payments in Tab 3 Year Beginning Loan Payable from tab 3 Total Payment = from tab 3 Interest + Ax% (tab 3) Principal B A- Ending Loan Payable A -C Enter formulas for the first row... then COPY those to the other rows!! NOTE: you may end up with a small difference because the factors in the Tables are rounded. Big E Co. buys a heavy duty forklift for its warehouse operations. This equipment costs $80,000. The dealer offers Big E the opportunity to pay off the financing loan in 5 annual payments or 60 monthly payments, at Big E's option. The interest rate is 12%. Which option is better? Annual payment if paid in 5 installments: $16,483.18 A Monthly payment if paid in 60 installments: $1,779.56 Annual total of 12 monthly payments: $ 21,354.67 B Extra amount by paying annually (A-B) $ (4,871.49) Future value interest factor of an ordinary annuity of $1 per period at i% for n periods, FVIFA(i,n). 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 5.101 1.000 1.000 1.000 1.000 2010 2020 2030 2040 3.030 3.080 3.091 3.122 4000 4.122 4.184 426 5.204 6.152 6.308 6.469 6.633 7 214 7.434 7.662 7.998 8.286 8.583 8.892 9214 9.389 9.755 10.159 10.583 10.482 10.950 11.484 12.008 11.587 12.109 12.808 13.488 12.683 13.412 14.192 15.028 13.809 14.680 15.618 16.627 14.947 15.974 17.098 18.292 16.097 17 293 18.599 20.024 17 259 18.639 20.157 21.825 18.430 20.012 21.762 23.698 19.615 21.412 23.414 25.645 20.811 22.841 25.117 27.671 22.019 24297 26.870 29.778 28.243 32.030 38.459 41.648 34.785 40.568 47 575 58,085 41.680 49.994 60.462 73.652 48.888 60.402 75.401 95.025 18 61 223 79.354 104.41 139.28 64.483 84.579 112.80 152.67 330 3494.984133 62328.08 1394020.802 33879878 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2050 2080 2070 2080 2090 2.100 2.110 2.120 2130 2140 2.150 2.100 3 .153 3.184 3215 3248 3278 3.310 3.342 3.374 3.407 3.440 3.473 3.508 4.310 4.375 4.440 4.508 4.573 4.641 4.710 4.779 4.850 4.921 4.993 5.086 5.528 5.637 5.751 5.887 6.105 6.228 6.353 6.610 6.742 6.877 6.802 6.975 7.153 7338 7.523 7.716 7.913 8.115 8 323 8.538 8.754 8.977 8.142 8.394 8.654 8.923 9200 9.487 9.783 10.099 10.405 10.730 11.087 11.414 9549 9 .897 10.200 10.637 11.029 11.438 11.859 12.300 12.757 13.233 13.727 14.240 11.027 11.491 11.978 12488 13.021 13.579 14.164 14.778 15.416 16.095 16.788 17 519 12.578 13.181 13.816 14.487 15.193 15.937 16.722 17.549 18.420 19.337 20.304 21.321 14 207 14.972 15.784 16.645 17.500 18. 531 19.561 20.655 21,814 23.045 24 349 25.733 15.917 16.870 17.889 18.977 20.141 21.384 22.713 24.133 25.650 27 271 2 9.002 30.850 17.713 18.882 20.141 21.495 22.953 24.523 28 212 28.029 29.995 32.099 34.352 38.783 19.599 21.015 22.550 24 215 28.019 27.975 30.095 32 383 34.883 37.581 40.505 43.672 21.579 23 278 25.129 27.152 29.381 31.772 34.405 37 280 40.417 43.842 47.580 51.680 23.657 25.673 27.888 30.324 33.003 35.950 39.190 42.753 48.672 50.980 55.717 60.925 25.840 29 213 30.840 33.750 38.974 40.545 44.501 49.884 53.739 59.118 65.075 7 1.673 28.132 30.908 33.999 37 450 41.301 45.599 50.398 55.750 61.725 68.394 75.833 84.141 30.539 33.780 37.379 41.448 48,018 51.159 58.939 63.440 70.749 78.989 88.212 98.603 33.088 38.786 40.995 45.762 51.100 57 275 64 203 72052 80.947 91 025 102 M 115,38 47.727 54.885 63.249 73.108 84.701 98.347 114.41 133,33 1 5562 181.87 212.79 249 21 68.439 79.058 94461 113.28 138,31 164 49 19902 241,331 283.20 356.79 434.75 530.31 90.320 1 11.43 138 24 172 32 215.71 271 02 341 59 4 3160 5 46,68 693.57 881.17 1,120.7 120.80 154.78 199.64 259.08 337.88 442.59 581.83 787,09 1,013.7 1,342.0 1,779.1 2.380.8 188.03 258.58 353 27 490.13 684 28 980.17 1.352.7 1.911.6 2.707.6 3.841.5 5.456.0 7.753.8 209.35 290.34 408.53 573.77 815.08 1.163.9 1.888.8 2.400.0 3.459. 5 4 .994.5 7 217.7 10.438 8.5E08 2.15E 10 5.41E+11 1.35E13 3.31E+14 7.938E+15 1.883E+17 4.358E+18 9.87519 2.188E+21 4.733E 22 1.002E24 1.000 2.170 3.539 5.141 7,014 9.207 11.772 14.773 18.285 22 393 27 200 32.824 39.404 47.103 58.110 66.649 78.979 93.403 110.28 130,03 292.10 647.44 1.420.5 3,134.5 11.022 15.090 1.000 2.180 3.572 5215 7.154 9.442 12.142 15.327 19.098 23.521 28.755 34.931 42 219 50.818 60.985 72.939 87 088 103.74 123.41 146.63 34260 790.95 1,816.7 4,163.2 15.084 21.813 19% 1.000 2.190 3.608 5291 7297 9.683 12.523 15.902 19.923 24.709 30.404 37.180 45.244 54 841 08.281 79.850 98.022 115 27 138.17 165.42 4 02.04 986.71 2,3142 5,529.8 22.253 31.515 20% 1.000 2200 3640 5.388 74421 9.930 1 2916 16.499 20.799 25.959 32.150 39.581 48.497 59.198 72.035 87.442 105.93 128.12 154.74 188.69 471.98 1,181.9 2.948.3 7,343.9 31.594 45.497 1.6E429 Calculate in amortization table for the 5 annual loan payments in Tab 3 Year Beginning Loan Payable from tab 3 Total Payment = from tab 3 Interest + Ax% (tab 3) Principal B A- Ending Loan Payable A -C Enter formulas for the first row... then COPY those to the other rows!! NOTE: you may end up with a small difference because the factors in the Tables are rounded. Big E Co. buys a heavy duty forklift for its warehouse operations. This equipment costs $80,000. The dealer offers Big E the opportunity to pay off the financing loan in 5 annual payments or 60 monthly payments, at Big E's option. The interest rate is 12%. Which option is better? Annual payment if paid in 5 installments: $16,483.18 A Monthly payment if paid in 60 installments: $1,779.56 Annual total of 12 monthly payments: $ 21,354.67 B Extra amount by paying annually (A-B) $ (4,871.49) Future value interest factor of an ordinary annuity of $1 per period at i% for n periods, FVIFA(i,n). 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 5.101 1.000 1.000 1.000 1.000 2010 2020 2030 2040 3.030 3.080 3.091 3.122 4000 4.122 4.184 426 5.204 6.152 6.308 6.469 6.633 7 214 7.434 7.662 7.998 8.286 8.583 8.892 9214 9.389 9.755 10.159 10.583 10.482 10.950 11.484 12.008 11.587 12.109 12.808 13.488 12.683 13.412 14.192 15.028 13.809 14.680 15.618 16.627 14.947 15.974 17.098 18.292 16.097 17 293 18.599 20.024 17 259 18.639 20.157 21.825 18.430 20.012 21.762 23.698 19.615 21.412 23.414 25.645 20.811 22.841 25.117 27.671 22.019 24297 26.870 29.778 28.243 32.030 38.459 41.648 34.785 40.568 47 575 58,085 41.680 49.994 60.462 73.652 48.888 60.402 75.401 95.025 18 61 223 79.354 104.41 139.28 64.483 84.579 112.80 152.67 330 3494.984133 62328.08 1394020.802 33879878 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2050 2080 2070 2080 2090 2.100 2.110 2.120 2130 2140 2.150 2.100 3 .153 3.184 3215 3248 3278 3.310 3.342 3.374 3.407 3.440 3.473 3.508 4.310 4.375 4.440 4.508 4.573 4.641 4.710 4.779 4.850 4.921 4.993 5.086 5.528 5.637 5.751 5.887 6.105 6.228 6.353 6.610 6.742 6.877 6.802 6.975 7.153 7338 7.523 7.716 7.913 8.115 8 323 8.538 8.754 8.977 8.142 8.394 8.654 8.923 9200 9.487 9.783 10.099 10.405 10.730 11.087 11.414 9549 9 .897 10.200 10.637 11.029 11.438 11.859 12.300 12.757 13.233 13.727 14.240 11.027 11.491 11.978 12488 13.021 13.579 14.164 14.778 15.416 16.095 16.788 17 519 12.578 13.181 13.816 14.487 15.193 15.937 16.722 17.549 18.420 19.337 20.304 21.321 14 207 14.972 15.784 16.645 17.500 18. 531 19.561 20.655 21,814 23.045 24 349 25.733 15.917 16.870 17.889 18.977 20.141 21.384 22.713 24.133 25.650 27 271 2 9.002 30.850 17.713 18.882 20.141 21.495 22.953 24.523 28 212 28.029 29.995 32.099 34.352 38.783 19.599 21.015 22.550 24 215 28.019 27.975 30.095 32 383 34.883 37.581 40.505 43.672 21.579 23 278 25.129 27.152 29.381 31.772 34.405 37 280 40.417 43.842 47.580 51.680 23.657 25.673 27.888 30.324 33.003 35.950 39.190 42.753 48.672 50.980 55.717 60.925 25.840 29 213 30.840 33.750 38.974 40.545 44.501 49.884 53.739 59.118 65.075 7 1.673 28.132 30.908 33.999 37 450 41.301 45.599 50.398 55.750 61.725 68.394 75.833 84.141 30.539 33.780 37.379 41.448 48,018 51.159 58.939 63.440 70.749 78.989 88.212 98.603 33.088 38.786 40.995 45.762 51.100 57 275 64 203 72052 80.947 91 025 102 M 115,38 47.727 54.885 63.249 73.108 84.701 98.347 114.41 133,33 1 5562 181.87 212.79 249 21 68.439 79.058 94461 113.28 138,31 164 49 19902 241,331 283.20 356.79 434.75 530.31 90.320 1 11.43 138 24 172 32 215.71 271 02 341 59 4 3160 5 46,68 693.57 881.17 1,120.7 120.80 154.78 199.64 259.08 337.88 442.59 581.83 787,09 1,013.7 1,342.0 1,779.1 2.380.8 188.03 258.58 353 27 490.13 684 28 980.17 1.352.7 1.911.6 2.707.6 3.841.5 5.456.0 7.753.8 209.35 290.34 408.53 573.77 815.08 1.163.9 1.888.8 2.400.0 3.459. 5 4 .994.5 7 217.7 10.438 8.5E08 2.15E 10 5.41E+11 1.35E13 3.31E+14 7.938E+15 1.883E+17 4.358E+18 9.87519 2.188E+21 4.733E 22 1.002E24 1.000 2.170 3.539 5.141 7,014 9.207 11.772 14.773 18.285 22 393 27 200 32.824 39.404 47.103 58.110 66.649 78.979 93.403 110.28 130,03 292.10 647.44 1.420.5 3,134.5 11.022 15.090 1.000 2.180 3.572 5215 7.154 9.442 12.142 15.327 19.098 23.521 28.755 34.931 42 219 50.818 60.985 72.939 87 088 103.74 123.41 146.63 34260 790.95 1,816.7 4,163.2 15.084 21.813 19% 1.000 2.190 3.608 5291 7297 9.683 12.523 15.902 19.923 24.709 30.404 37.180 45.244 54 841 08.281 79.850 98.022 115 27 138.17 165.42 4 02.04 986.71 2,3142 5,529.8 22.253 31.515 20% 1.000 2200 3640 5.388 74421 9.930 1 2916 16.499 20.799 25.959 32.150 39.581 48.497 59.198 72.035 87.442 105.93 128.12 154.74 188.69 471.98 1,181.9 2.948.3 7,343.9 31.594 45.497 1.6E429