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Solve question in Excel: Consider a $ 4 2 , 0 0 0 loan to be repaid in equal annual installments at the end of
Solve question in Excel:
Consider a $ loan to be repaid in equal annual installments at the end of each of the next years. The interest rate is Set up an Amortization Schedule for the loan. Use the information in your Amortization Schedule to answer the following questions:
a What is the annual payment?
b What portion of the annual payment goes toward interest for year in dollars?
c What portion of the annual payment goes toward interest for year in dollars?
d What is the total amount to be paid over the years of payments owed?
You shop around and find another lender that offers a similar loan at a interest rate. You will still borrow $ to be repaid in equal installments at the end of each of the next years.
e At the interest rate, what is the total amount to be paid over the years of payments owed?A
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