The Henrikson Construction Company borrowed $75 000 at 11.20% compounded quarterly to buy construction equipment. Payments of $3500 are to be made at the end of every three months.

(i) How many payments are required?

(ii) Construct a partial amortization schedule showing the details of the last three payments and the totals.

To show details of the last three payments, we need to know the number of payments required to amortize the loan principal.

PVn = find this number in the above problem (Q1)

PMT = find this number in the above problem (Q2)

i = find this number in the above problem (Q3)

n = solve for this number. Answer is between 30 and 40. State the value of n (Q4). State the rounded up the value of n (Q5)

Set up an amortization schedule using Q5 number of rows:

Payment number Payment amount Interest Paid Principle repaid Outstanding Balance

Complete the entire table