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Please give solution in excel format. and Excel formula. Please don't make it in any other format. Mini Case: Part A: Cost of Goods Sold
Please give solution in excel format. and Excel formula. Please don't make it in any other format.
Mini Case: Part A: Cost of Goods Sold Equipment Renovations Other Financing interest rate Compounding periods per year Length of amortization (years) Savings/Surplus Property and vehicle cost Mortgage rate Term of mortgage Bond face value Time until maturity Owners of a new restaurant have found numerous costs associated with starting their business. They financed the total of these costs with end-of-month payments through a loan from the bank at 1.39% compounded semi-annually, amortized over 8 years. (A) {B} {C) {D) {E} {F} {G} {H} {0} {} {K} {L) {M) {N} $32,000.00 $1,820.00 $2,000.00 $2,510.00 1.39% semi-annually 8 $40,000.00 $144,000.00 1.1% 1 What is the size of the Monthly payments required to settle this loan? 2 What is the Principal Balance outstanding on the loan after one year? 3 What is the size of the final payment? 4 Construct a partial amortization schedule for this loan. 11 $44,000.00 7 2.3% Part B: After two years in the business, the owners have saved (have a surplus of) $40,000.00. They must decide if they invest in property or investment bonds. Bond rate if they invest in a property and a vehicle, the total cost will be $144,000.00, of which $ 40,000.00 will be required as a down payment. The fixed interest rate on the mortgaged amount is 1.1% compounded semi-annually for a term of 11 years. 5 What is the size of the semi-annual payments required to settle this mortgage? 6 What is the size of the final payment? How long would it take (in months) to sattle this loan with regular monthly payments of exactly $2000 instead of the PMT value calculated in Part 5? Part C: If the owners choose to invest in bonds instead, they look at a $44,000.00 bond set to mature in 7 years with a bond rate of 2.3%, payable semi-annually. The market rate is 1.1%, compounded semi-annually. The owners will only purchase the bond if they can afford it with their savings $40,000.00, and they can get the bond at a discount because they think the market rate will go down, potentially making the bond more valuable in the future. 8 If the bond rate is 2.3%, will the bond be sold at a premium or a discount? Explain your answer. Calculate the purchase price of the bond if it is purchased today ( 7 years before maturity). 10 Do the owners have enough money to buy their bond? Will they make the purchase? Mini Case: Part A: Cost of Goods Sold Equipment Renovations Other Financing interest rate Compounding periods per year Length of amortization (years) Savings/Surplus Property and vehicle cost Mortgage rate Term of mortgage Bond face value Time until maturity Owners of a new restaurant have found numerous costs associated with starting their business. They financed the total of these costs with end-of-month payments through a loan from the bank at 1.39% compounded semi-annually, amortized over 8 years. (A) {B} {C) {D) {E} {F} {G} {H} {0} {} {K} {L) {M) {N} $32,000.00 $1,820.00 $2,000.00 $2,510.00 1.39% semi-annually 8 $40,000.00 $144,000.00 1.1% 1 What is the size of the Monthly payments required to settle this loan? 2 What is the Principal Balance outstanding on the loan after one year? 3 What is the size of the final payment? 4 Construct a partial amortization schedule for this loan. 11 $44,000.00 7 2.3% Part B: After two years in the business, the owners have saved (have a surplus of) $40,000.00. They must decide if they invest in property or investment bonds. Bond rate if they invest in a property and a vehicle, the total cost will be $144,000.00, of which $ 40,000.00 will be required as a down payment. The fixed interest rate on the mortgaged amount is 1.1% compounded semi-annually for a term of 11 years. 5 What is the size of the semi-annual payments required to settle this mortgage? 6 What is the size of the final payment? How long would it take (in months) to sattle this loan with regular monthly payments of exactly $2000 instead of the PMT value calculated in Part 5? Part C: If the owners choose to invest in bonds instead, they look at a $44,000.00 bond set to mature in 7 years with a bond rate of 2.3%, payable semi-annually. The market rate is 1.1%, compounded semi-annually. The owners will only purchase the bond if they can afford it with their savings $40,000.00, and they can get the bond at a discount because they think the market rate will go down, potentially making the bond more valuable in the future. 8 If the bond rate is 2.3%, will the bond be sold at a premium or a discount? Explain your answer. Calculate the purchase price of the bond if it is purchased today ( 7 years before maturity). 10 Do the owners have enough money to buy their bond? Will they make the purchaseStep by Step Solution
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