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Please show the amortization schedule and method of just working it out with formulas (compound interest, annuity, etc.) . Loan details Today is June 30
Please show the amortization schedule and method of just working it out with formulas (compound interest, annuity, etc.)
. Loan details Today is June 30 2020, which is the initiation date of the loan. You obtain a fixed rate loan with principal and interest payments from Westpac. The amount borrowed is $950,000 to buy a Lamborghini Aventador. The nominal interest rate associated with this fixed rate loan is the Reserve Bank of Australia cash rate (as at June 30 2020) plus a margin of 3.75%. This interest rate is compounded monthly and is fixed from the initiation date. The maturity date of the loan is 4 years. The financial year ends on 30 June each year. . . Assume the following payments during the term of the loan: Repayments of $10,000 at the end of each month beginning on July 31 2020 until 30 June 2024 (inclusive). September 30 2022: a single payment of $120,000. January 31 2023: a single payment of $150,000. A condition of the loan is that you must make payments of at least $90,000 by the end of each financial year. Given such payments, your job is to determine the outstanding value of the loan on June 30 2024. Please report your answer and show all workings in the appropriate cells allocated to Q5. Your working should be equivalent to the workings you would show in an exam. You may lose marks if you do not show your working out. An example of a calculation is detailed belowStep by Step Solution
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