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inn [45]
3 years ago
13

A. Construct an amortization schedule for the $300,000 loan with a 2.2% interest rate compounded monthly. The loan will be paid

back in 15 years making monthly payments. You need to calculate the principal payment and interest payment respectively of each month.
b. Construct an amortization schedule for the $300,000 loan with a 2.7% interest rate compounded monthly. The loan will be paid back in 30 years making monthly payments.You need to calculate the principal payment and interest payment respectively of each month.
Business
1 answer:
Gala2k [10]3 years ago
7 0

Answer:

since there is not enough room here, I prepared two amortization schedules on an excel spreadsheet and I attached them

Explanation:

in order to determine the monthly payment, we can use the formula to calculate present value of an annuity:

PV = annuity payment x annuity factor

annuity payment = PV / annuity factor

  • PV = $300,000
  • annuity factor for 2.2% / 12 = 0.18333% and 180 periods = 153.1964438

I used an annuity calculator to determine the annuity factor

annuity payment = $300,000 / 153.1964438 = $1,958.27

we use the same formulas for the second question:

PV = annuity payment x annuity factor

annuity payment = PV / annuity factor

  • PV = $300,000
  • annuity factor for 2.7% / 12 = 0.225% and 360 periods = 246.54977

I used an annuity calculator to determine the annuity factor

annuity payment = $300,000 / 246.54977 = $1,216.79

Download pdf
<span class="sg-text sg-text--link sg-text--bold sg-text--link-disabled sg-text--blue-dark"> pdf </span>
<span class="sg-text sg-text--link sg-text--bold sg-text--link-disabled sg-text--blue-dark"> pdf </span>
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3 years ago
Harvey is an auto dealer at Vonga Automobiles. As part of his team, he is required to directly call potential customers and conv
Naily [24]

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Explanation:

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3 years ago
The following information relating to a company's overhead costs is available. Actual total variable overhead $ 73,000 Actual to
Andrei [34K]

Answer: $2,000 favorable

Explanation:

Total variable overhead variance = Budgeted variable overhead - Actual total variable overhead

Budgeted variable overhead = Budgeted machine hours allowed for actual output * Budgeted variable overhead rate per machine hour

= 30,000 * 2.50

= $75,000

Total variable overhead variance = 75,000 - 73,000

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2 years ago
Ocean City Kite Company sells kites for $11.50 per kite. In FY 2019, total fixed costs are expected to be $250,000 and variable
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Answer:

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Explanation:

The computation is shown below:

Number of kits required to be sold to meet the goal = Total Contribution Margin Required ÷ Contribution Margin per Unit

where,

Total contribution margin required is

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And, the

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= 40,000 kits

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3 years ago
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Answer:

Principal

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The principal has the right to abolish the relation or set the objectives of the agent and allocation of task and authority delagated to the agent. This control is given to principal by law to protect his interests.

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3 years ago
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