Henrikson Construction Company borrowed $75 000 at 11.20% compounded quarterly to buy construction equipment. Payments of $3500 are to be made at the end of every three months.

10 questions: (Q1-Q10):

(i) How many payments are required?

(ii) Construct a partial amortization schedule showing the details of the last three payments and the totals.

(i) To show details of the last three payments, we need to know the number of payments required to amortize the loan principal.

Question 1: PVn = find this number in the above problem;

Question 2: PMT = find this number in the above problem

Question 3: i = find this number in the above problem

Question 4: n = solve for this number. Answer is between 30 and 40.

Set up an amortization schedule using "n" number of rows (found in question #4). Fill in the question marks.

Payment number Payment amount Interest Paid Principle repaid Outstanding Balance

0 0 0 0 ?

1 ?

This symbol means that I skipped a few rows. Please fill in the rows.

31 ? ? ? 7305.39

Complete the table