PROBLEM 5 Step 1: Solve for PMT NPER 20 RATE 10% PV -30000 PMT FV 0 Step 2: Prepare the Amortization Table (1) Int paid in first 3 years (2) Bal rem at end of Year 5 (3) Princ repaid in 5th year $ 9,930.00 $ 48,315.30 $ (4,392.30) Year PMT Beg Bal Int Princ Repaid 1 $0.00 $30,000.00 $ 3,000.00 $ (3,000.00) $ Bal Rem 33,000.00 2 $0.00 $ 33,000.00 $ 3,300.00 $ 3 $0.00 $ 36,300.00 $ 3,630.00 $ (3,300.00) $ 36,300.00 (3,630.00) $ 39,930.00 4 $0.00 $ 39,930.00 $ 3,993.00 $ (3,993.00) $ 43,923.00 5 $0.00 $ 43,923.00 $ 4,392.30 $ (4,392.30) $ 48,315.30 6 $0.00 $ 48,315.30 $ 4,831.53 $ (4,831.53) $ 53,146.83 7 8 9 10 11 12 $0.00 $ 53,146.83 $ $0.00 $ 58,461.51 $ $0.00 $64,307.66 $ $0.00 $ 70,738.43 $ $0.00 $ 77,812.27 $ $0.00 $ 85,593.50 $ 5,314.68 $ (5,314.68) $ 58,461.51 5,846.15 $ (5,846.15) $ 64,307.66 6,430.77 $ (6,430.77) $ 70,738.43 7,073.84 $ (7,073.84) $ 77,812.27 7,781.23 $ 13 14 15 16 17 18 19 20 Total (7,781.23) $ 85,593.50 8,559.35 $ (8,559.35) $ 94,152.85 $0.00 $ 94,152.85 $ 9,415.29 $ (9,415.29) $103,568.14 $0.00 $103,568.14 $ 10,356.81 $ (10,356.81) $113,924.95 $0.00 $113,924.95 $ 11,392.50 $ (11,392.50) $ 125,317.45 $0.00 $125,317.45 $ 12,531.74 $ (12,531.74) $ 137,849.19 $0.00 $137,849.19 $ 13,784.92 $ (13,784.92) $151,634.11 $0.00 $151,634.11 $ 15,163.41 $ (15,163.41) $166,797.52 $0.00 $166,797.52 $ 16,679.75 $ (16,679.75) $183,477.27 $0.00 $183,477.27 $ 18,347.73 $ (18,347.73) $201,825.00 $0.00 $171,825.00 ($171,825.00)