Question
Excel Online Structured Activity: Loan Amortization Your company is planning to borrow $1.5 million on a 5-year, 13%, annual payment, fully amortized term loan. The
Excel Online Structured Activity: Loan Amortization Your company is planning to borrow $1.5 million on a 5-year, 13%, annual payment, fully amortized term loan. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. Open spreadsheet
What fraction of the payment made at the end of the second year will represent repayment of principal? Do not round intermediate calculations. Round your answer to two decimal places. fill in the blank 2 %
| Loan Amortization | |||||
| Loan amount | $1,500,000 | ||||
| Term in years | 5 | ||||
| Annual coupon rate | 13.00% | ||||
| Calculation of Loan Payment | Formula | ||||
| Loan payment = | #N/A | ||||
| Loan Amortization Schedule | |||||
| Year | Beginning Balance | Payment | Interest | Principal | Ending Balance |
| 1 | $1,500,000.00 | $195,000.00 | |||
| 2 | |||||
| 3 | |||||
| 4 | |||||
| 5 | |||||
| Formulas | |||||
| Loan Amortization Schedule | |||||
| Year | Beginning Balance | Payment | Interest | Principal | Ending Balance |
| 1 | #N/A | #N/A | #N/A | #N/A | #N/A |
| 2 | #N/A | #N/A | #N/A | #N/A | #N/A |
| 3 | #N/A | #N/A | #N/A | #N/A | #N/A |
| 4 | #N/A | #N/A | #N/A | #N/A | #N/A |
| 5 | #N/A | #N/A | #N/A | #N/A | #N/A |
| Percentage of 2nd Year Payment Representing Repayment of Principal | #DIV/0! | =E13/C13 |
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Authors: Thomas McCafferty
3rd Edition
0071484795, 978-0071484794
