The Centurion Corp. is putting together a financial plan for the company covering the next three years, and it needs to forecast its interest expense
The Centurion Corp. is putting together a financial plan for the company covering the next three years, and it needs to forecast its interest expense and the related tax savings. The firms most significant liability is a fully amortized mortgage loan on its real estate. The loan was made exactly ten and one-half years ago for $3.2M at 11% compounded monthly for a term of 30 years. Use the AMORTIZ program to predict the interest expense associated with the real estate mortgage over the next three years. (Hint: Run AMORTIZ from the loans beginning and add up the months in each of the next three years.)
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