The four methods

1) Pay the accumulated interest at the end of each interest period, and repay the principal at the end of the loan period. 2) Make equal principal payments, plus interest on the unpaid balance at the end of each interest period. 3) Make equal end-of-period payments over the loan period. 4) Make no payment until end of the loan period.

An owner of a small business borrows $785,000 at 6.9% annual compound interest. The loan is to be repaid over a 7-year period using the four possible repayment methods. Payments are made at the end of the year Solve using Excel. Use Excel Functions/Operations to create 4 tables showing the four loan repayment methods