Question 4

A local company has just approached a venture capitalist for financing to develop a ski hill. On April 1, 2017, the venture capitalist lent the company $1,099,600 at an interest rate of 4%. The loan is repayable over four years in fixed principal payments. The first payment is due March 31, 2018. The ski hill operator's year end will be December 31.

(c) Prepare an instalment payment schedule. Period Cash Payment Interest Expense Principal Reduction Balance Apr. 1, 2017 $ 1099600 $ $ Mar. 31, 2018 Mar. 31, 2019 Mar. 31, 2020 Mar. 31, 2021 Total $ $