Question
Your company borrowed a 24-month $750,000 8% fixed rate loan on June 1, 2022. The loan requires payment at the end of each month. Hint:
Your company borrowed a 24-month $750,000 8% fixed rate loan on June 1, 2022. The loan requires payment at the end of each month. Hint: It would be useful to prepare an amortization schedule.
- How much is the companys monthly payment on the loan?
- What will be the balance on the loan at the end of May 2023?
- How much will the company need to refinance the loan at the end of December 2023? Hint: The amount to refinance a loan is the balance on the loan at the time of refinancing.
- How much of the monthly payment in March 2023 will be used to repay the loans principal?
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Short Term Financial Management
Authors: John Zietlow, Matthew Hill, Terry Maness
5th Edition
1516512405, 9781516512409
