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Your company is planning to borrow $0.75 million on a 5-year, 9%, annual payment, fully amortized term loan.What fraction of the payment made at the
Your company is planning to borrow $0.75 million on a 5-year, 9%, annual payment, fully amortized term loan.What fraction of the payment made at the end of the second year will represent repayment of principal? Do not round intermediate calculations.
1 Loan Amortization 3 4 Loan amount Term in years Annual coupon rate $750,000 5 9.00% Calculation of Loan Payment Loan payment = Formula #N/A Payment Interest Principal Ending Balance 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Loan Amortization Schedule Year Beginning Balance 1 2 3 4 5 Formulas Loan Amortization Schedule Year Beginning Balance 1 #N/A 2 #N/A 3 #N/A 4 #N/A 5 #N/A Payment #N/A #N/A #N/A #N/A #N/A Interest #N/A #N/A #N/A #N/A #N/A Principal #N/A #N/A #N/A #N/A #N/A Ending Balance #N/A #N/A #N/A #N/A #N/A 19 Loan Amortization Schedule 20 Year Beginning Balance Payment 21 1 #N/A #N/A 22 2 #N/A #N/A 23 3 #N/A #N/A 24 4 #N/A #N/A 25 5 #N/A #N/A 26 Percentage of 2nd Year Payment Representing Repayment 27 of Principal 28 Interest #N/A #N/A #N/A #N/A #N/A Principal #N/A #N/A #N/A #N/A #N/A Ending Balance #N/A #N/A #N/A #N/A #N/A #DIV/0! =E13/C13Step by Step Solution
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