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Question 2 (40 points) Fountain Corp will take a loan of 330,000.00 that is to be amortized by making payments at the end of quarter
Question 2 (40 points) Fountain Corp will take a loan of 330,000.00 that is to be amortized by making payments at the end of quarter for 26 years. Interest on the debt is 12% compounded quarterly. Note: the number in brackets shows the points value for that blank. 1 - Calculate the amount of the semi-annual loan payments. Round to 2 decimal places 2 - Using the AMORT function, find the values for the blanks in the table below. Amount paid Payment # 0 Interest paid Principal Paid Balance 1 9,900.00 479.87 329,520.13 1 per calculation 15 per calculation 9654.02 2 321074.94 27 per calculation 9344.99 1034.88 3 27 per calculation 9344.99 1034.88 3 47 per calculation 4 1869.11 281822.73 FINAL 8 6 5 9 Total Interest Paid Total Cost of Loan 10 Start by calculating the payment amount required to pay off the loan END/BEG (1) P/Y (1) C/Y (1) N (2) I/Y (1) PV (1) FV (1) PMT(4) 2 - Using the AMORT Function fill in the blanks from the amortization schedule shown above. 1 - Balance at the beginning of the loan (1) 1 - Balance at the beginning of the loan (1) 2 - Principal paid as part of the 15th payment (2) 3 - Balance owing after the 27th payment (2) 4 - Interest paid as part of the 47th payment (2) 5 - Balance owing after the final payment (1) 6 - Principal paid with the final payment (4) Interact naid with the final payment 1 7 - Interest paid with the final payment (4) 8 - Amount of final payment (4) 9 - Total interest paid on the loan (4) 10 - Total cost of the loan (4)
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