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This is a loan problem question for my accounting class. Following is all the information given to me to solve the problem. Can someone help
This is a loan problem question for my accounting class. Following is all the information given to me to solve the problem. Can someone help me, please?
Use the following check digits:
Sum Total Cash flow = Sum interest paid
Owe at end = $0
Sum Principal repaid = amount borrowed
Sum Total Payment = Sum Interest paid + Sum principal repaid
IRR of the cash flows = interest rate
0 2You borrow money on a self liquidating installemnt loan (equal payments at the end of each year, each payment is part principal part interest) 3 Loan 4 Interest Rate 5 Life (years) 6 Date of Loan $235,000 13.80% 46 January 1, 2019 9 Use the installment method- not straight line 10 Do NOT round any interrmediate numbers. 11 Do NOT turn this into a monthly problem 12 13 a) What is the annual payment? 14 b What are the total interest payments? 15 c) After 27 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point)? 16 d) After 27 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point)? 17 18 Redo the problem if the interest rate is 19 20 (for a well designed spreadsheet this should take 30 seconds) 21 22 e) What is the annual payment? 23 f What are the total interest payments? 24 g) After 27 payments have been made, what percentage of the total interest has been paid (round to the nearest percentage point]? 25h) After 27 payments have been made, what percentage of the total principal has been paid (round to the nearest percentage point)? 26 27 28 29 2.00%Step by Step Solution
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